It’s not the title of the Beatles’ song, that is what we, the certified productivity specialist, do in every organization we are in. As you know, the productivity is the ratio between output and input. Therefore it is simply said, to improve the productivity, we need to improve the output and reduce the input, but how?
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Many of you have heard this quote, but I believe not many of us understand it, and know how to deal with it. If we understand this, it would be more easy for us to accept the change. What have been worked well in the past, might not work today. What has become a leader years ago, now is just a follower. It’s all about the change. I see it happens in my company, every year, there must be a new requirements applied by our buyer. if we can not fulfil it, we will lose the business, but to apply it, we will face a problems from worker, the supplier, and all stakeholder of the organization. How can we handle this?
Most of the problems happen on the floor that create low productivity is misunderstanding on the assignment or direction that subordinate got from their superior. It does not mean their superior did not explain what they need their subordinate to do. Somehow, minutes of meeting, or briefing, has conducted more than enough but the situation still happen, even in the organization where the system has been established very well.
It is not about how many certification your organization has got. It is more about the behaviour, the habit of the people in your organization. Why is that? And what should we do with that? Some of you might ask this question. How come the increament in labor productivity can not be seen in my financial report, meaning no profit or even get lost. Or, you might ask, how to ensure the increament in labor productivity will increase our profit.
Well, it’s not quite easy to explain but it is possible to find a simple approach to understand the situation as I will try to share here. For labor intensive industry, increament in minimum wages will impact the business sustainability of that industry. In Greater Jakarta area, the highest minimum wages in Indonesia, the increament of labor cost from 2012 to 2013 is 38%, and from 2013 to this year is 15%. To survive, some companies has relocated their factory to the area where minimum wages still acceptable, such as central Java where the minimum wages is only half of Greater Jakarta area.
As a productivity specialist, I will say it’s not necessary and indeed would create more risk in your investment. |
AuthorMaskal Novessro is a certified productivity specialist from APS. Eager to practice and share productivity improvement of both business and life. Categories
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June 2015
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