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productivity
process that converts human & material resources in to products or services
what does the efficiency with which productivity is implemented determine
a company's profitability
is reducing payroll the best way to increase profitability
NO, increasing employee productivity is more effective
what is the focus for achieving productivity
work smarter not harder
where does productivity need to be emphasized
throughout the whole company since it affects every aspect of operations
what is the efficiency of the entire production process dependent on
what resources are available & how effectively they are managed to produce the service
what are the inputs of production
assets
ex. capital: labor, equipment, materials
what does the competitive edge of the landscape industry depend on
quality of output & the amount of production hrs required to produce it
what is critical to meeting production goals regarding personnel
placing the right people in managerial roles
who is responsible for the success of production teams
management
what is the role of management & supervisors in production teams
team leaders who create the production environment, provide resources, & set output goals
sources of lost production time
- excessive travel time bc of poor routing
- equipment breakdowns
- return trips to yard for supplies
- downtime while loading supplies
- travel time to job site
- unskilled production personnel
- lack of communication regarding budgeted hrs
- inability to communicate w foreign labor
- insufficient briefing on installation specifications
what is a large part of production management associated with
managing people
how can managers elevate their production teams
be motivators & address the human factor rather than focus on the task-based factors
motivating factors in employee motivation theory
- achievement
- recognition of achievement
- interest in the task
- responsibility for enlarged tasks & challenges
- opportunity for growth & advancement to higher level tasks
most effective system in fulfilling human needs
participative system
characteristics of a participative system
the entire team plays a role in decision making, which results in striving to attain goals & raise the productivity bar (raises all employee's levels of self-esteem & self-confidence)
objective of any management system
get buy-in from all levels of personnel & to improve productivity efficiency
Total Quality Management (TQM)
integrative system that is structured to provide improvement within the business environment in response to internal & external needs
internal needs in TQM
- regarding improving company culture to meet the needs of employees & improve morale
- includes addressing human needs to attain job satisfaction (skill development & self-improvement)
external needs in TQM
meeting customer needs (quality & responsive service)
goals of long-term goals set in TQM
- improve employee morale, skills, productivity
- improve quality of service
- increase customer satisfaction
- improve customer retention
- reduce production costs
Six Sigma
based on a problem-solving method that focuses on increasing customer satisfaction & improving profits by increasing production efficiency & reducing production costs
what does the name six sigma represent
levels of improvement (six sigma = highest)
members of six sigma teams
- champion
- master black belt
- black belt
- green belt
project criteria in six sigma
- clearly defined goals
- project approved by management
- manageable scope
- project related to company mission
perspectives considered in six sigma when considering a new project
1) financial
which objectives will ensure the financial success of the project
2) customer
what impact will this project have on meeting customer objectives
3) internal
what process needs to be addressed to achieve the project's goals
4) educational
what do team members have to learn & implement fin order to achieve the project's goals
how is improvement gauged in six sigma
by determining the number of mistakes that occur within a process
PDCA Cycle
plan, do, check, act
plan in PDCA
set a goal
do in PDCA
initiate an action from improving a process
check in PDCA
measure the results to assess the change in productivity efficiency
act in PDCA
implement the new system through training & providing necessary resources; determine wether additional action is required
role of measurement indices in all management systems
serve as indicators of progress
examples of measurement indices
- production hrs compared to industry benchmarks
- % successful bids vs total submitted
- % contract sales vs sales calls
- sales per FTE compared to past years
- % jobs completed on budget
incentive programs
provide recognition & rewards for completing jobs efficiently
role of incentive programs
catalysts for increasing productivity & profitability
what is the success of incentive programs contingent upon
selecting goals that are within employees' control
examples of adequate rewards for performance
- monthly or weekly individual or team recognition
- gift certificates
- extra time off
- attendance at an industry conference
process flowcharting
having employees outline a production process & identify the steps that could be improved to enhance efficiency
outcome of process flowcharting
a detailed mapping of how the process is currently executed
why is process flowcharting beneficial
- employees get to use their own initiative
- employee knowledge may come from competitors
how can increasing administration efficiency be beneficial
reduce overhead costs
administrative processes that could benefit from more efficient procedures
- contract processing time
- invoicing time
- posting payroll & invoices to the job costing system
- processing time for accounts payable & receivable systems
- customer inquiry or complaint response time
role of software programs on administrative efficiency
expedites data processing & reduces the amount of data entry personnel needed
overall result of increasing production efficiency
- reduced labor costs
- increased gross margins
- reduced overhead (bc of reduction in labor?)
- increased net profit
process management
enables companies to compare the way a process was originally structured & how it is currently operating
kaizen
encompasses incremental improvement through the power & knowledge of those who are involved in the process on a regular basis
what does process management & kaizen both rely on
the knowledge & experience of employees to identify where improvements are needed & to make recommendations for addressing them
requirements for each improvement in process management & kaizen
- measured to assess time & quality factors
- monitored to assess efficiency & conformance to production standards
- improved wherever deemed necessary
quality standards
distinguish a company from its competition & are important in acquiring & retaining clients
how is productivity improvement assessed
on the basis of process efficiency within the respective quality standards
benefits of implementing process documentation
an effective means of identifying roadblocks in a process, & where breakdowns occur
process documentation
breaks down the production process into its key components & rates each one on a point scale
employee benefits of training programs
- capable of working more efficiently & productively
- responsibility can be increased
- become mentors for entry-level personnel
- advance their knowledge
- provides opportunities for advancement
end result of education/training programs
- elevation of professionalism in the field
- establishes an ongoing training program in the company through mentorship
"just-in-time training"
information is presented to the employees just prior to when they can apply it
cross training
practice of training employees to work in several different roles, or to do tasks outside their normal responsibilities
benefits of cross training to administrative personnel
provides new operations skills, enabling them to fulfill additional responsibilities
how is cross training of administrative personnel beneficial to the company as a whole
-increased innovation by newly trained personnel who have an objective perspective of the new process
- maintenance of productivity during the absence of key personnel
benefits of clear/concise communication between managers & supervisors
ensures conveyance of expectations, current job status, & where improvements need to be implemented
what is important about communication in todays industry regarding language
must be multilingual and coincide with the language of the crew
why is understanding culture important for employee management
management can better address individuals' needs
visual tools to enhance communication within a company
- job boards
- information postings on apps
communication links to provide to reduce downtime & improve production efficiency
- field job reports
- budgeted hours
- material schedules
benefit of tablets & smart phones on communication
- real-time communication with management & supervisory personnel
- enhanced client response time
strategies to reduce downtime associated with equipment breakdowns
- stringent maintenance programs
- backup inventory
- in-house maintenance
how often should heavily used equipment be replaced
every 3 to 4 years
benefits of replacing equipment
providing the latest developments will make job processes more efficient & reduce labor hours
role of digital imaging & 3D design programs
provide tools that enable clients to visualize landscape designs in perspective & on their residential or commercial footprint
benefits of computerized fuel pumps
- provide accurate records of fuel costs for production vehicles & equipment
- reduces crew downtime
information provided by GPS tracking by management
- arrival & departure time from job sites
- location of vehicles
- travel speed
- routing
passive GPS MRM system
collects data & downloads the info at the end of the day
active GPS MRM system
provides constant communication links & transfer of information
productivity benefits of GPS systems
- accurate accounting pf production labor hours
- better time management
- efficient way for managers to monitor productivity
- reduced fuel costs (routing efficiency)
plant growth regulators (PGRs)
- reduce growth of turf, shrubs, & trees
- eliminate turf seed heads & undesirable fruit set on ornamental trees
benefits of PGRs on productivity
- client satisfaction & retention (reduced water bills; more time for landscape detailing)
- reduction of overhead (less equipment & maintenance costs)
- reduction of job costs (less labor hrs)
what is the key to productivity
management of human assets
