9 to 5

Traditional methods of work standards are based on cost method. This method compares the number of hours that an employee worked against the quantity of product produced.

What are the problems with this method?

• The measurement criteria are not “better quality” or “less waste” but quantity of work done.
• These work standards mandate the number of work hours. A lot of time and effort is wasted trying to “make the number of hours” we are supposed to work.

The focus is not on delivering the best possible product for the customer, but on somehow “squeezing the number of hours”.

With the assumption that we cannot change the cost method of productivity measurement overnight, here is my thought on how we can overcome its limitations: Let us measure the “number of hours” for the purpose it is intended to be measured-costing. Give importance to improvement in process and quality and reduction of waste. This also means a focus-shift to providing good solutions to the customer and not just “working a number of hours”.

Considering the challenges one would face, this is no small accomplishment. But I believe improvements can always start in a small way and here are a few steps on how to:

1. Bring in a culture of identifying problems: Identifying the need for a better process or reduction of non-value added work is the first step towards improvement. A simple way to do this is to draw the process, may be on a sheet of paper. What we will notice is may be redundant work or even absolute lack of process!!
2. Devise methods to solve the problem: The second step is asking the question “How do we improve the process?” or “How do we eliminate waste in the process?” This is when we establish a method to solve the problem.
3. Define a process to apply the solution: In this step we define a process to implement the methods devised in step 2. This is essential as the methods to solve a problem may involve multiple stakeholders and a process ensures effective participation.
4. Measure success: Once the solution is applied, measure its success against the original problem statement.

What most organizations lack is the first step “Bring in a culture of identifying problems”. A culture shift is not possible without involvement from supervisors and the management.

Do you also believe the cost standard method we follow to measure productivity is flawed? Or do you believe it adds value? Have you ever tried to bring in a process improvement in your project/organization? Do you think the method above captures its essence? What were the challenges you faced with the process improvement? Please share your feedback and comments.