| We choose productivity as the basis for success | | | | technical developments. They establish an |
| because it offers the greatest opportunity for a | | | | information flow and communication system |
| better work environment and a better, also | | | | between the various business unit general |
| lower, cost way of doing things. All but a very | | | | managers and the technical disciplines. The |
| few organizations can benefit from improvements | | | | technical disciplines have "subject matter experts" |
| in their productivity. | | | | (SME) who are responsible insure that the general |
| As an example of the size of the opportunity | | | | managers understand how the technical issues |
| available through productivity improvement, its | | | | affect their business units. The impact could be to |
| cost reduction area dwarfs the size of the | | | | open areas for new product development. It could |
| current rage, outsourcing. Outsourcing of certain | | | | present competition. It could also offer |
| functional areas can in fact be harmful to the | | | | opportunities to improve the production of |
| reputation and effectiveness of the enterprise | | | | existing products. |
| which does the outsourcing. This especially true of | | | | The communication between the general |
| customer service applications. | | | | managers and the SME's is proactive in both |
| That portion of the customer service function | | | | directions. This produces a cross transfer of |
| which deals with customer complaints is uniquely | | | | concepts and ideas within the organization. |
| positioned to assist the organization to improve its | | | | The second type of productivity improvement is |
| ways of doing things. The complaints of the | | | | a change in the way in which a function or |
| customer are often based upon poorly designed | | | | process is performed which makes the function |
| internal processing systems. | | | | or task simpler or reduces the labor content of |
| In the author's experience as a full time | | | | the task. An example of this type improvement |
| consultant over a 10 year period, virtually every | | | | would be to change a report layout of a |
| enterprise has the capability to obtain between 5 | | | | warehouse pick ticket from item number |
| per cent and 25 percent cost reductions as a | | | | sequence to physical location sequence. This |
| result of full implementation of productivity | | | | change will require less travel activity to pick an |
| enhancement programs for existing systems. | | | | order than the former sequance. In this instance |
| There are two types of productivity | | | | we have made the task simpler and more |
| improvement. The first is technology | | | | organized to preform. |
| improvement. A very good example of | | | | It is in the second example that we see the |
| technology improvement is word processing. | | | | opportunities which are present in the vast |
| Before word processing came into existence, the | | | | majority of organizations. It is important to note |
| way a business letter was created was for the | | | | that this kind of opportunity is within the control |
| writer to write out the letter by hand, give it to | | | | of the organization and as such can be used |
| someone to type, proof read, correct and return | | | | extensively as a management tool. These |
| to the writer. The writer then proof read the | | | | opportunities are often visible to the workers who |
| letter again and then sent it out. With word | | | | are engaged in performing the various tasks. |
| processing, the writer prepares the letter on the | | | | Their observations can be converted to specific |
| word processor. After the word processor | | | | approaches which can improve the process. |
| checks the spelling, the letter is proof read by the | | | | The various skills and tools which we will be |
| writer who thens prints out the letter and sends it | | | | discussing here are all needed to obtain the data |
| out. Technology has made this task simpler and | | | | and present operational practices. Once that |
| quicker. | | | | information is available, we use the same tools to |
| Technology improvements most often appear as | | | | develop and test the proposed new methods for |
| new products. Your systems have to be adjusted | | | | the enterprise. It is because the tools and |
| to incorporate the new product. Often this results | | | | methods are missing from present curriculum that |
| in a hidden cost factor in adopting the new | | | | we include them in this discussion. The |
| technology. | | | | development of better productivity becomes |
| Large, well managed organizations, are very | | | | more efficient when these tools are applied to this |
| sensitive to the need to keep up to date with | | | | subject. |