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Productivity

There are 4 main ways to increase productivity:

  1. Improving equipment. To increase efficiency of using equipment it is necessary to modernize it and keep in an operational status (it includes maintenance and careful operating).

  2. Increasing labor productivity. Using the schemes of progressive material incentives such as piece-rate payments, bonus payments or sharing of profits. Also employer should use some social guaranties like non-state pensions, sick-pay schemes and other social maintenance (such as health centers, children camps or kindergarten).

  3. Improving material using. Ways: Reprocessing wastes of production and using production methods which provide to reduce the material output ratio.

  4. Better management organization. There are many types of organization (the main are: line control, functional organization and project group organization). Each of them is suitable for a certain production layout. If we choose a wrong type of management it will decrease the efficiency of production. Also there are number of methods of a suitable management organization analysis such as crucial path analysis, normative model or other methods of operational research. The main idea of crucial path analysis – reducing the time of production by rearrangements of working operations depend upon their duration to prevent delays of equipment.

When the system of production works good, it seems simple and natural, but if the manager feel that something is going wrong without recognizable cause he usually engage consultants to improve it’s efficiency.

There are three main ways to improve the performance. First is salary politics, second is improving coordinating different works during production process and third is restructuring the management system.