What happened to improving productivity?
In my recent travels across the U.S, I have been watching continuous improvement teams select measures for improvement. Recall that by seeing and eliminating waste, we have the ability reduce defects, shorten lead-times, reduce cost, and grow our business. I coach that every improvement project needs one key measure and the other measurement dimensions can be used as balancing measures. Regardless of what we pick, when taking on a lean project we should always target 10% plus improvement. So why the blog? What's happening? In my recent surveillance, many organizations, particularly service organizations and public institutions are leaving cost off as a key measure. Productivity is essential! What exactly is productivity and why is it critical? Productivity is the measure of how efficiently a process converts inputs into outputs. It is important for businesses and government institutions because it affects their profitability / budget...