People productivity
QCD: measuring manufacturing performance, Published by the Department of Trade and Industry in 2004 suggested that people productivity (PP) is: ‘…a measure of the ratio between the number of good units made and the number of direct operator hours it takes to make those units. Using this measure can help control the people cost associated with production. The objective is to maximise the PP figure by either reducing the direct operator involvement, or increasing the number of good units made.'
People productivity = Number of good units made / number of direct operator hours.
A high PP can only be obtained when:
- Most of direct employees’ work is adding value to the process.
- Non-value added work is reduced to minimum.
- Waste is eliminated.
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