Organization's Most Important Jobs, Vaue for Money and Productivity

(Refer our High Quality Management Encyclopedia “Management Universe” at: http://management-universe.blogspot.com/)

Organization's Most Important Jobs

Finding the customers and retaining them. For this, continually provide maximum value for money (VFM) to the customers to sustain highest level of customer satisfaction.
Improving overall productivity and thereby, minimizing the overall costs as much below the price as possible and thus maximizing profits.

Value for Money to Customers (VFM)

Value to customer (VFM) = (Total quality "Q" X Total service inclusive of pre, during and post customer service "S" X Relationship with customers "R") divided by (Price "P" X Lead times "L")

Therefore, value for money to customers should be continually enhanced by continual improvements in:

• Quality.
• Price: price being normally an outcome of the market forces of supply and demand, in order to make profits the overall costs should be kept well below those price levels. Only the price competitiveness can be achieved.
• Delivery.
• Service and relations.

Productivity

Productivity is the measure of output per unit of input.

Therefore, the equation for productivity = Output quantity/ Input quantity

It is important that the output should be an acceptable output to the users or customers. So enters the quality. Therefore, in order to reckon and emphasize qualitative changes in output and input, the equation of productivity will read as given below:

Productivity = Output quality and quantity/ Input quality and quantity

Productivity, thus, can be improved by three ways:

• Increase output and keep input constant.
• Keep output constant and decrease input.
• Increase both, output as well as input making sure that the proportion of increase in output is more than that of input.

Normally, outputs are: goods (products) and/or services.

Normally, inputs are various resources: man (labor), machine (equipment), material, money (capital) and also, time and information.

For More Guidance, Assistance, Training and Consultation

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Training on various "Productivity Techniques" and "Efficient Work Practices/Methods" is provided by Prodcons Group's Mr Shyam Bhatawdekar, eminent business executive, management consultant and trainer- par excellence with distinction of having trained over 150,000 professional from around 250 organizations.

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