Productivity Analysis Service
"What is the focus of a business?" There may be many answers to the question, but the most important of these will undoubtedly be the “efficiency” option. The globalizing world market forces businesses to achieve competitive advantage and increase their profitability. For this reason, businesses try to increase their efficiency by using the scarce resources they have at the most effective level. However, many factors such as technology, financing, manpower and marketing are among the reasons that affect productivity. It is extremely important for the business to turn the data into information for its business purposes. In line with this information, efficiency measurement and analysis, which reveals weak or strong sides of the business, are among the mandatory functions of business management.
Definition of efficiency
The definition of efficiency has been done in many ways. The most comprehensive of these is, “It is a balanced and rational way of life that performs the right works for the business with a correct and economic work,” which is interpreted as the philosophical approach of the Japanese Productivity Center.
The second, narrower definition of efficiency is "Achieving the highest result with the lowest possible resource expenditure." This definition is an indicator of the level of “output / input” relationships that occur in the methods, input quantities, production capacity and output mix applied in the current production process. As a result, it is possible to define efficiency as the coefficient obtained by proportioning the products and services (outputs) produced after a certain period to the production resources (inputs) used to realize this production.
Productivity Indicators
Productivity indicators are used for economic and technical performance measurements of the production process and the use of inputs in enterprises. Efficiency equation can be used to calculate efficiency indicators of various system levels.
Productivity indicators can be grouped into three groups:
1.Total Efficiency Rate: Total efficiency rates are one of the best indicators of operational efficiency. Total input is the sum of inputs such as labor, material, capital, and energy.
2.Multi-Factor Productivity Rate: It is the ratio that measures the relationship between the total output or part of the output and the inputs.
3. Partial Efficiency Rate: It is obtained by proportioning the total output or one part output to each input type. These rates indicate the amount of production per unit of an input type.
Productivity analysis
Weekly productivity analysis:
New problems that may arise or arise can be discussed at the weekly meetings of the business. Thus, the conclusions can be clearly identified with appropriate measures.
Weekly reports can be obtained after data entry is made with the program that is compiled day by day. With the weekly report system, the duration and rates can be calculated and the overall system rates can be determined according to 12 6-day posture types.
Monthly productivity analysis:
Monthly records examined in monthly meetings can be used to report. In the monthly meeting, the main goal is to focus on the manager of labor productivity and reveal some strategic points of productivity. It is useful to compare each ratio over time and between groups. Thus, the auditor can evaluate the performance of the team by calculating labor productivity. Teams can also measure their own performance.
How can we help you?
Achieving productivity in production depends on the efforts of all factors in production activities. Therefore, factors affecting productivity may differ in each business. The most effective factor on productivity in labor intensive enterprises in terms of quality and quantity of production is labor productivity. Decision support systems should also be used in order for the obtained data to be easily processed and transformed into information. It is very important for business management to invest in information systems.
As SDM Software Services, our aim is to support your company's activities with various software products, to contribute to the efficiency analysis service, to analyze the needs of your company with various information applications and to produce solutions. Thanks to the efficiency analysis system of the top managers, it will be easier to reach the information they want, and much more comprehensive results can be obtained in the efficiency application to be made throughout the enterprise.
