Productivity Paradox

• 1. The productivity approach is not enough as cutting costs is a zero sum game
• 2. Focussing on mfg structure and technology are better ways to boost productivity
• 3. Massive investments in low cost technology can reduce flexibility
• 4. Whan costs are the goal, quality suffers
• 5. When quality is the goal costs often go down
• 6. Investment in innovation sometimes get ignored becuase they temporarily reduce productivity
• 7. Focus on competiveness not productivity

• • What to buy
  • Size lovarion and capacity of plant
  • Choices of PT
  • PICS
  • Quality systems
  • Cultures
  • Workforce Policies