A bottom‐up approach for productivity measurement and improvement

Abstract

Purpose The steady incline in oil prices combined with the recent credit crisis and downturns in financial markets has driven organizations to re‐evaluate their manufacturing processes and bottom line. The purpose of this paper is to suggest a bottom‐up approach that may be used by firms in planning, managing and forecasting productivity improvements. Design/methodology/approach A multiple‐case study approach was used: two comprehensive cases and seven short cases were used to illustrate the model. Findings The lack of understanding of the relationship between productivity, profitability and performance has led to the application of piece‐meal solutions for problems in productivity. Bottom‐up approach in improving productivity will provide better results than top‐down approach. Originality/value This paper describes the bottom‐up approach which has been successfully used for managing productivity improvement initiatives.