In: Operations Management
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In its simplistic form productivity equals output divided by inputs(Vonderembse (2013). However, when it some to productivity it is very difficult to increase productivity with out negatively effecting quality. For example, if on an assembly line you want to increase the number of products produced per hour you can accomplish this by speeding up the assembler line. However, if you speed up the line there are more likely to be more defects in the product and thus the quality goes done. This is called the Quality Condition. This means that even though more products are produced at a faster pace, there may be more defects and returns which will actually negatively effect the companies over all productivity,
There are trade offs in productivity and the key os for management to understand the proper formula to make a company the most productive. A manager needs to understand that ratio between the increase of speed of manufacturing a product versus the quality of products off the line. If the line is running too fast the defects mat out weight the additional products being make at the higher rates. The returns will put outweigh the larger number of products being produced and as a result productivity would go down. The manager is responsible for understanding the optimum number products to produce with a low rate of failure.
There can also be other factors with productivity such as skilled versus unskilled labor and higher grade materials versus cheaper ones. Again, a manager needs to weigh the pros and cons of both to understand the most productive route.
As per my views productivity equal to output divided by input yes that is right to increase in productivity output must be more compare to input work and materials. but an increase in productivity leads to a decrease in quality because of less time to work on every assembly line by increasing speed and chances of more defects increases rapidly. By increasing speed defects increment called quality condition that makes a negative impact on the value of the company. This is good when the demand for products increases instantly in the market then the highly skilled worker required to work fast and decrease defects in fast assembly, this action can unread build cost but save time and make an optimum quality product built.
The manager is responsible for increasing the speed of assembly line and to understand the optimum number of product because decreasing the failure in production line manager should plan planning and if planning fails then increased assembly line have no mean because the defective product comes back in the assembly line and same time required to build.
Skilled labor can help in decreasing defects in an assembly line but their charges increase build cost and unskilled worker work may increase the defects. The chipper material enhances the quality of the product and leads to defects and failure but higher-grade material leads to better quality and high-cost products or low profitability.
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