Consultancy of Productivity Management System

In the present economic and social conditions of our country, that due to economic sanctions is placed in a difficult situation, the challenges of many managers of economic establishments and organizations is that of being able to:

• Increase the volume of production of goods and services
• Improve the quality of their produced goods and services
• Lower the cost of production of their goods and services
• Increase profit derived from their operations

If these objectives and desires are realized, then the economic establishments and organizations can both ensure the satisfaction of their customers, shareholders and employees as well as with their continual and lasting presence in local and foreign markets in their own way be able to assist in realization of the objectives of the country’s economic development plans.

The secret to success in this path consists of: using and applying “the system of productivity management comprehensively and with the right method.” We acquaint you with the fundamentals and characteristics of the system of productivity management. 

Productivity management system

The system of cycle of productivity management started from the second-half of the nineteenth century in the advanced countries of the world and at present, it is applied in almost all the countries of the world. The consolidated global model of the productivity management cycle is made up of four components:

• Measurement of productivity
• Analyses and assessment of productivity

                             Productivity Databank

3. Productivity improvement planning
4. Implementation of productivity programs

In the first stage: with teaching and culture-building productivity management to the organization’s managers and employees and forming specialist productivity workgroups, the general and specialized productivity indexes of the organization is measured for 5 years on the basis of reliable methods recommended by the Asian Productivity Organization (APO) and the National Iran Productivity Organization (NIPO).

In the second stage: changes in the measured indexes of productivity are examined analyzed in comparison with the organization’s own performance in different years; in comparison with rest of the organizations; in comparison with superior local and international units and also in comparison with the industry average of the entire economy. Factors and complications governing the organization and economic establishment are identified and the appropriate techniques and tools for elimination or regulation of obstacles and improvement in productivity of the organization are identified and a matrix of the problems-solutions is prepared for raising the organization’s productivity.  

In the third stage: on the one hand on the basis of measurement of indexes of the organization’s productivity in the existing situation and by analyzing the economic conditions of national and international business atmospheres; and on the other hand, on the basis of productivity maturity and the organization’s existing local facilities, quantitative targeted increase in the organization’s productivity for the years ahead is performed within the framework of different scenarios. Productivity improvement projects in the spheres of management of human resources, production technology, marketing and sales etc … are defined and the mechanisms for implementing them is compiled in the organization’s productivity improvement document.

In the fourth stage:   the steps and projects determined in the productivity document are implemented by the organization itself or by the economic establishment with the supervision of the consultant and the designated times. Thereafter, on the basis of productivity management’s cyclical output the indexes are measured once again in order to determine the organization’s quantitative and qualitative productivity improvement.

It needs to be explained that the cyclical productivity management project can be implemented both at the general economic establishment level as well as at the general level of its chief logistical processes and management level and also at the level of its important and main processes in accordance with “Parto” Law. Moreover, the performance of the organization or economic establishment in advancing the organization’s management is noted for decision-making and management of the organization on the basis of ratio of outputs to inputs and in the form of general and specific productivity indices.   

Requirements and impositions of the law:

In article 5 of the law of the country’s sixth economic, social and cultural plan, it has been emphatically stated that all organizations and economic establishments sponsored by them install the cyclic productivity management program in their respective organizations in the course of the Sixth Plan (2017 to 2021).    

Towards realization of this important legal requirement, the Ministry of Industry, Mine and Trade by signing cooperation agreement with the Industrial Management Organization and with the aim and objective of prudently confronting the problems of processing business establishments, intends to install with the cooperation of the Industrial Management Organization the productivity management system program in more than 3 million industrial, mining and trading units.

Cooperation agreement between Ministry of Industry, Mine and Trade with the Industrial Management Organization

Outputs and achievements

With the proper implementation of the productivity management system and cooperation of the organization’s management and experts with productivity consultants of the Industrial Management Organization, the achievements mentioned below are to be expected:

• Increase in the production volume of goods and services or inputs and outputs of the economic establishment;
• Identification, elimination or regulation of wastages and excesses (MUDA) of economic entity
• Decrease in cost of production of goods and services;
• Increase in profits produced from the economic establishment’s operations and earning the approval of shareholders;
• Increased customer satisfaction about the better quality and quantity of goods and services;
• Increase in the market share of the economic establishment in both the local and foreign (export) markets.
• Decrease in the four dilemmas of the managers of economic establishments and reciprocally, boosting the consistent and lasting presence of economic establishments;
• Giving appropriate response to the requirements and obligations mentioned in article 5 of the Sixth Development Plan statute in the field of raising productivity.