Question

Summarize ProMES. Why is productivity often confused with efficiency? Should a measurement system be flexible? Please explain why or why not.

Answer 1

1) It can be said that there is somewhat an inversely proportional relationship between productivity and efficiency. Efficiency is related to the quality and the process which reduces the waste by creating products with less resources is considered as an efficient product. On the other hand, when a company successful produces its products with all the available resources, it is then called as productivity.

Both the terms are interrelated with each other such that without proper efficiency, a company can't be productive. Efficiency determines how well a business converts it's input into output and whereas productivity determines how well a business utilize it's resources to produce goods and services. As both aims for the same thing, so sometime people gets confused between the two words. With better productivity, the business can be able to reduce the operation costs and thus increase it's profit which in turns increases the market share of the company.

2) In my opinion, a management system needs to be flexible as it helps to increase the overall performance of the system. To be competitive, a company needs to make it's cost of materials and products, quality and it's delivery time flexible as much as possible. By making the measurement system flexible, a company can be able to understand it's strategic planning more clearly. Hence, it can be said that as the flexible measurement makes a clear bonding with the performance of the system processes, it becomes important for the system to perform well.

Hope this helps :)

Please like if it is helpful :)