Which of the following process flow metrics is an essential requirement to calculate ‘productivity’?
Which of the following process flow metrics is an essential requirement to calculate ‘productivity’?
To calculate productivity, effort-related metrics are essential as they directly measure the amount of work or effort inputted into producing a given output. Productivity is defined as the ratio of output produced to the effort expended to produce that output. Metrics such as employee hours worked, labor utilization rates, and similar effort-related measurements are required to accurately assess productivity.
A productivity metric is a measurement that expresses part or all of the company’s output in terms of an input. Some common metrics are revenue per employee, customer satisfaction, number of parts produced, downtime, employee turnover rate, labor utilization rate, gross margin or gross profit and EBITDA (earnings before interest, taxes, depreciation and amortization).