Productivity

Productivity

Productivity is how fast and in larger amount can be merchandise be made with scarce materials. It can be measured by the next formula:

(Productivity equals value divided by time)

Productivity = Value / Time

By this definition there are two primary ways of increasing productivity:

1) Increase the value created

2) Decrease the time required to create that value

It can also be referred as a measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Productivity is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency.

There are many different ways of measuring productivity. For example, in a factory productivity might be measured based on the number of hours it takes to produce a good, while in the service sector productivity might be measured based on the revenue generated by an employee divided by his/her salary.

http://www.businessdictionary.com/definition/productivity.html

http://www.stevepavlina.com/blog/2005/10/what-is-productivity/

http://www.investorwords.com/3876/productivity.html

Supply Chain

A supply chain is defined as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer.

There are three types of supply chain complexity:

• Direct supply chain: a company, a supplier, and a customer involved in the flows of products, services, finances, and/or information

• Extended supply chain: suppliers of the immediate supplier and customers of the immediate customer, all involved in the flows of products, services, finances, and/or information

• Ultimate supply chain: the organizations involved in the flows of products, services, finances, and information from the ultimate supplier to the ultimate customer

Some SC applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies.

SC applications have the potential to improve the time-to-market of products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs.

http://searchmanufacturingerp.techtarget.com/definition/supply-chain-management

http://engsci.aau.dk/kurser/F06/Lscm/Lscm/Lesson%201/DEFINING%20SUPPLYCHAIN%20MANAGEMENT.pdf

Production

Production is a process by which goods or services are created involves the step by step conversion of one form of material into another through processes with a view to enhance

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