Improved profitability, increased revenues and lower costs sound perfect for any business. But in the era of extreme competition one cannot achieve this with the same traditional practices and approach. What could it be done then? If the competition is doing more with less, then manpower productivity could be one of the issues. Low-output from operators post a serious problem within an organization, forcing companies to adopt innovative techniques and practices to increase manpower productivity.
In the modern competitive world, productivity is a fundamental concept in assessing the economic performance of organizations. Therefore, productivity improvement has become a key objective for industries.
An on-going concern for management and business heads is productivity. Regardless of the size of the businesses, boosting productivity is essential to enhancing profitability and maintaining competitiveness. Productivity on the manufacturing floor relies on a combination of efficient employees, equipment and processes.
Why do we need Manpower Productivity Improvement?
As manpower productivity is directly related with benefit and cost of ROI calculation, we need to look at these two crucial points in a macro to micro to nano level in order to sustain the growth momentum as well as to tide over the hitches and pains pertaining to them. Most of the organizations have started realizing the importance of manpower productivity in order to meet global challenges. In today’s world of economic globalization, competition in any business is getting tougher and tougher.
Therefore, in order to overcome this challenge, to delight customers and increase the bottom line, competing organizations should make a paradigm shift in their business approach. Customer orientation, business objectives, cost reduction, increased profit, the shorter cycle time of a process and better ROI are the trending buzzwords in the business. In the modern competitive world, productivity is a fundamental concept in weighing the economic performance of organizations. Therefore, productivity improvement has become a vital objective for industries.
Manpower productivity is one of the crucial ways to measure efficiency in an organization. The relationship between manpower and the organization is simple: Shop-floor manpower is directly proportional to productivity. The more and efficient people are available to work, the faster are the organization’s projects completed and the organization can take more projects. Conversely, a lack of adequate manpower stops businesses from completing tasks on time.
The lack of productivity results in a reduction in revenue and profit, which in some cases means the business cannot stay operational. Lagging manpower productivity can be a symptom in a diagnostic test for the business. If manpower productivity is low, this could spell lower profitability and higher cost. In order to increase manpower productivity, the business must have smooth – optimized and benchmarked processes in place. Productivity growth affects business decisions, capital investment profitability and savings.
Faber infinite reduced Manpower Productivity by ~20%
Team Faber Infinite has delivered significant results in major industries across geographies by improving productivity and ultimately throughput and reducing labor costs. Team Faber has improved the manpower productivity by ~20% and reduced labor cost by ~25% in one of the leading manufacturers and suppliers of original equipment manufacturers (OEM) for commercial vehicles, passenger vehicles and industrial products across the globe.
Faber Infinite has also delivered tremendous results by improving manpower productivity by ~40% and reducing throughput time by ~20% at world’s second largest and India’s largest manufacturer offering comprehensive cryogenic liquid and gas transportation, storage and distribution solutions to the industrial gas industry, oil field service industry as well as LNG industry.
Faber Infinite has also improved manpower productivity by 33% and reduced labor cost by 30% in the world-leading provider of compressors with presence in over 180 countries. 90% manpower productivity improvement has also been delivered in one of the leading pharmaceutical organization with presence across the globe.
To summarise, it impacts total output, capital productivity and various costs incurred by a company, and not only on manpower costs. Hence, it is not a waste of time to improve manpower productivity. An organization’s output is as much dependent on shop-floor manpower productivity as it is on capital productivity. Similarly, it is necessary to increase manpower productivity just as it is necessary to increase capital productivity. This calls for a total approach to productivity for the effective running of an organization.
This white paper talks about the importance of Manpower Productivity Improvement, its possibilities and impact on overall business in further details.
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To read more, you can download the whitepaper: https://faberinfinite.com/white-paper/
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