Both individuals and businesses stand to gain from enhanced productivity.
Productivity refers to the amount of work completed by an individual or group within a specific time. Higher productivity means achieving more with less time or effort. Accomplishments can be measured by the quality of work, the number of tasks completed, or the volume of products created.
Improved productivity enables people and groups to manage their time more efficiently, complete their tasks effectively, and achieve their goals. In this article, we explore what productivity is, why economic productivity is important, and how businesses can boost their growth potential.
The Two Main Types of Productivity are Economic and Personal Productivity:
- Economic Productivity – organisations or nations frequently assess productivity using a mathematical formula that calculates output divided by input. For instance, a country might evaluate its economic productivity by dividing its annual gross domestic product (GDP), the monetary value of all produced goods and services by the total number of hours required to produce those goods and services. Similarly, a manufacturing business might measure productivity by dividing the total number of products created by the number of hours employees worked on the factory floor.
- Personal Productivity – assesses achievements relative to the time and effort invested in them. Unlike a mathematical equation, personal productivity often considers the quality of work and other subjective factors. For instance, in a customer service role, it might be more meaningful to measure personal productivity by tracking improvements in customer satisfaction over time rather than simply counting the number of customers assisted.
Here are Five Reasons why Economic Productivity Matters:
- Standard of Living: Higher productivity means more goods and services are produced efficiently, leading to lower prices and higher wages. This improves the overall standard of living.
- Economic Growth: Productivity growth allows a business to produce more output without increasing the amount of inputs. This leads to sustainable economic growth.
- Competitiveness: More productive businesses can compete better in their market place, attracting investment and creating jobs.
- Resource Efficiency: Increased productivity means better use of resources, reducing waste and conserving natural resources.
- Innovation: Productivity growth often comes from technological advancements and innovation, driving further economic development.
Enhance your Productivity by Eliminating the “Seven Wastes plus One”
In today’s fast-paced business environment, improving productivity is crucial for staying competitive. One effective way to achieve this is by eliminating the seven wastes plus one identified in Lean Manufacturing, also known as “Muda” in Japanese. These wastes were first conceptualised by the Toyota Production System (TPS) and have since become a cornerstone of Lean thinking. Let us explore these seven wastes and how eliminating them can boost productivity.
At CBASS we use the acronym TIM WOODS to describe these wastes?
1. Transportation – unnecessary movement of materials or products between locations adds no value and increases costs. Streamlining the production process to minimise transportation can lead to faster production times and lower costs.
2. Inventory – excess inventory ties up capital and incurs additional costs for storage, handling, and insurance. It also increases the risk of damage or obsolescence. Implementing Just-In-Time (JIT) production and maintaining only the necessary inventory levels can significantly reduce these costs.
3. Motion – excessive movement by workers, such as reaching, bending, or walking, can lead to inefficiencies and fatigue. Designing workspaces to minimise unnecessary motion can improve productivity and worker satisfaction.
4. Waiting – idle time, whether it is waiting for materials, equipment, or information, is a significant waste. By optimising workflows and ensuring that resources are available when needed, businesses can reduce waiting times and increase efficiency.
5. Overproduction – occurs when more products are made than are needed or produced too early. This leads to excess inventory, increased storage costs, and potential waste if products become obsolete. By aligning production closely with demand, businesses can reduce overproduction and its associated costs.
6. Overprocessing – involves doing more work than is necessary to meet customer requirements, such as using overly complex processes or higher-quality materials than needed. Simplifying processes and aligning them with customer needs can reduce costs and improve productivity.
7. Defects – producing defective products leads to rework, scrap, and customer dissatisfaction. Implementing quality control measures and continuous improvement practices can help reduce defects and improve overall product quality.
8. Skills – failing to fully use employees’ skills, creativity, or potential contributions within an organisation happens when they are not effectively engaged, or their talents are not harnessed to enhance the production process. In a Lean environment, recognising and capitalising your workforce’s diverse skills and ideas is crucial to fostering a culture of continuous improvement and innovation
In summary, by systematically identifying and eliminating these wastes, businesses can streamline their operations, reduce costs, and enhance productivity. It involves effective time management, task prioritisation, and maintaining focus. Setting clear goals and minimising distractions are key. Additionally, maintaining a healthy work-life balance and taking regular breaks can prevent burnout and sustain long-term productivity.
Productivity is about working smarter, not harder, to achieve the desired outcomes efficiently. If you or your business think this topic is worth exploring why not talk to ray@cbass.co.uk
Ray McCreadie
Strategic Planning and Delivery Lead – CBASS
January 2025