Productivity is not a Cutting Technology
Productivity is the predicted speak word for 2010 going forward. Expect a dazzling and robust exchange, emphasising and categorizing productivity as what businesses of this nation should collectively embrace to enable the vision of creating a new Big Australia. Therefore a strategy for Productivity emerges. A government business strategy to increase inputs (tax base) to replace and expand outputs ( stimulus spending). Government agendas aside. Productivity is a fundamental understanding and measurement that business operators should apply.
Productivity is not a measure of being able to lay off staff or slashing wildly at costs or investments to spike income or profit figures. Neither is opening new locations, going global, starting new employees or expanding a product range. That would be seen as business growth and expansion rather than productivity. A nuts and bolts grasp for productivity is to be able to assess and measure the efficiencies with which output is produced for any given range and set of inputs. This relates to all sectors or systems operating in your business including staffing, materials, energies (electricity gas), computer and IT ,purchasing , distribution, whare-housing and so on.
To be ahead of the speak going forward let us look at a couple of areas of business where productivity measures and thinking can apply;
Staffing – Staff training and cross training is vital if staff levels were reduced or are being held low. Up-skilling and multitasking will help plug gaps .Up-skilling will ensure valuable and profitable tasks get priority.
Prioritise –set and attend to first things first. Productivity is easily wasted if systems don’t allow unimportant tasks to be set aside or reduced in frequency. Extra hands and focus should be on what makes your business profit .
Measurements—this is a golden egg. If you haven’t measured productivity how do you expect to monitor and know what’s actually happening. Guessing doesn’t cut it nor does figures in your head. If the best fabricator can weld a certain number or brackets , you measure and understand that system , this is a measure of productivity. More importantly impediments and difficulties can be identified when fabrication output changes.
Equipment and Technology——everyone is capable of wasting valuable work time. Outdated or faulty equipment magnifies losses. Take a good look at your systems and equipment. If your systems struggled with 3 staff and turn-over of 600 grand will it accommodate business growing to 5 staff and 1million turn-over.
Rod Richards
Posted by Rod Richards on 18 Jun 2010