Only by accurately measuring the work can you begin to improve the activity or process

A business needs to have measures that together point towards what is an improving, static or worsening situation. These measures should also help to point to the reason for what has been identified.

To assess performance in a business you need various measures – no single measure will suffice. There isn’t one single performance measure on which you can base decisions to run your business. After all, no business has just one KPI (Key Performance Indicator).

Performance can be measured at several different levels (cars per year, cars per week, manhours per car). Most importantly it should be measured and monitored over periods of time that are appropriate to the business.

What do you measure against?

You can assess performance by measuring the work content of different jobs in hours – that’s a common standard. Robust and appropriate measures should point towards the causes of poor performance.

Regular review of these causes should identify where action can be taken to remove some of the hurdles. The more hurdles you can remove, the shorter the time to complete the task and the better the productivity.

Productivity Pointer

Be on your guard that your productivity solutions don’t just ‘work round’ the effect of the problem, without addressing the cause of the problem.

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Some suggestions for studying productivity improvement