Take the productivity challenge 

Productivity or performance can be quantified by assessing three key factors in a
business, a department, a process or an operation: utilisation, performance and method.

Utilisation: This is about keeping people, processes and equipment occupied.

Performance: This is largely about the vigour with which humans apply themselves to the proper task.

Method: This is about effective and efficient processes, layouts, equipment and
materials.

Estimate how well you think each factor is operating at, say of capacity, hours, machine time, costs, or a process like data management, handling the post. Be realistic.

	Example percentage	Your estimate %
Utilisation	70%
Performance	80%
Method	80%

Now multiply the percentages for the three factors will tell you the overall effectiveness (eg 70 x 80 x 80 = 44.8% effective) ___ x ___ x ___  = ___% effective

What does this mean?
Taken in isolation, each factor in our example appears to be achieving a reasonable level of productivity. But when the overall effectiveness is calculated, a different
picture emerges. Only 44.8% of capacity or hours or machine time or costs etc is effective. In itself, this is a startling fact. What is your overall effectiveness?

What could be achievable?
Achieving 100% is virtually impossible and local circumstances will influence
the maximum and practically achievable levels. However, at the example level, getting labour performance at 44.8% effective to say, 50% effective, is an 11.61% improvement, or a 10.4% reduction in cost.

So, quite small changes can have a significant effect.

If you want to know what influences each of these three key factors, just ask us. Email us at productivity@scott-grant.co.uk or call our productivity hotline on +44 (0)161 234 2121.