Labor Productivity Claims

The focus of the project is to identify the low output not only on production lines but in the service departments of the office, the departments that are responsible for sales, supply, service and maintenance, design. We have sufficient experience and offer such an analysis also for companies specialized in the development of software.

Labour productivity claims are some of the most contentious claims of the company. This is based, in part, on the fact that losses from low productivity are difficult to quantify in contrast to direct costs. Additionally, labour productivity indicators are not measured on a regular basis in most companies. As a result, substantiating a cause-and-effect relationship between business troubles and losses from low productivity is a non-trivial task.

Typically labour productivity is measured as as labour hours per quantity of product or of material installed. Issue of productivity level begin to become a problem in the company when the time frame for implementation of tasks is violated in comparison with competitors or with own historical reports. That's what's on the surface. But it is more difficult when the company does not have a relevant data for comparing the time spent in the production of the current product (or service). Management does not formulate the problem of labour productivity from such point of view and an indicator of potentially low productivity is only an insufficient level of profit or a violation of investment obligations.

There are many common causes for poor labour productivity. Common causes include, but are not limited to not rational management, insufficient staff motivation or not favorable terms of contracts. And our experience can be useful to identify specific reasons as well as formulate recommendations for their elimination.

First you need to find something and identify it in order to measure it. And our first step is to find the most suitable model for assessing performance based on the processes and activities of the company. Further we will evaluate the dynamics of labour productivity using the model and based on historical data of the company. The final step is to analyze the reasons for certain trends and identify specific activities in directions that the company's management can influence.

Methodically our work is based mainly on the use of various models for calculating the cost price as well as instruments for processes analyzing. The choice of specific tools and forms for presenting the results will depend on the specific industry, the company and the conditions of our project.