| Title: | The Digital way of working |
| Moderator: | QUARK::LIONEL ON |
| Created: | Fri Feb 14 1986 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 5321 |
| Total number of notes: | 139771 |
Over the years the trend has been that less and less Digital employees
work in "Direct Labour" areas. One consequence is that less and
less employees have an "Output" which is easy to measure. This makes
it very difficult to measure the productivity of the company in
any terms other than a dollar ratio. By this I mean that our measures
are of the type:
Dollars Out (Goods&Services)
Productivity= -----------------------------------
Dollars In (Cost of providing above)
In the current situation in which it is VERY difficult to hire
additional people, it has become more important to develop a non-dollar
based measure of output for each indirect (Overhead) function. This
helps us both to identify changes and opportunities in productivity
improvement, and to put the finger on the functions which have no
real output and eliminate them (controversial enough?). We can also
better identify low priority outputs, eliminate the need for them,
and re-direct scarce people power to the agreed higher priorities.
Two questions:
1. Is it possible to develop corporate wide metrics for these areas
which would fit onto one side of one page? If, so suggestions are
invited. More than one page at each management level means that
it won't get read!
2. If you prioritise outputs and identify the lowest one; how do
you handle the skills mismatch which will exist between the function
which is no longer relevant and the function in which we want
to invest more man-hours? This process is essential to allow
us to stop continually hiring from outside to fill the high-priority
positions.
Maurice FitzGerald (who_wants_to_help_this_happen)
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 461.1 | Knock Knock!! | JGO::FITZGERALD | Maurice FitzGerald @JGO | Fri Feb 19 1988 04:57 | 2 |
Here I am, knocking at the door of productivity improvement, and
(Surprise)--there's no one at home!
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| 461.2 | Who's There | PH6VAX::LYKENS | Been down so long it looks like up to me | Fri Feb 19 1988 09:36 | 6 |
Perhaps what you are asking is too generic to answer with a
single page of applicable cross-functional metrics. Can you provide
a sample that will illustrate what you're seeking?
-Terry {~}{~}
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| 461.3 | formulaes and suggestions to help measuring .... | UTRTSC::OPIUM | Thu Apr 14 1988 11:58 | 52 | |
At Field Service a formula is used to indicate productivity.
It is a measurement of the actual DLH consumed, expressed as a percentage of
the potential DLH available. (DLH = direct labour hours)
in formulae:
utilised hours
productivity = ------------------------
maximum potential hours
at field service this means:
total #calls * (avg. travel time + avg. repair time)
= ----------------------------------------------------- x 100
#man * 37.5 * #weeks in month
This PRODUCTIVITY definition is: the EFFICIENCY of the process (system)
The UTILISATION is a common parameter that indicates the EFFECTIVITY.
meaning how effective were you in the use of the actual hours made available to
you.
in formulae:
productivity
utilisation = -------------------- x 100
availability
|
|
| available man weeks * 100%
-----------------------> = -------------------------
#man * weeks in month
actual DLH
or: [ = --------------------------- x 100% ]
available man weeks * 37.5
However these formulaes are used in a productive environment (essential is that
the activity is quantifieable) they maybe used in other situations aswel.
If you read the "CONSULTANT FORUM" of Digital volume 4 number 3 page 4,
Peter F Drucker (widely known and famous management scientist) writes:
"Today, one of the big challenges is finding ways to measure productivity.
But I don't believe we can measure productivity by itself-we can only compare
it.One useful measure is to compare your company to the competition on the
ratio between number of units of output and numbers of white-collar people on
the payroll."
Hopefully of any help, Greetings Herman Bronkhorst.
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