Techniques for Productivity Improvement


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Unique Motors (India) Limited is the Mumbai-based dealer of BELCO. It is one of the pioneering dealers in vehicle-market and has been managed in a conservative style. It has been doing very well for the last 30 years, but with the dramatic change in the market-variables recently coming out, it is finding difficult to cope up with the changing scenario.

The company’s president ultimately hires some consultant’s expertise for assessing the overall and giving fruitful suggestions for improvement. The consultant reported that sub-optimal productivity in all functional areas as the one important factor responsible for the overall dilemma.

The company mainly deals in diesel vehicles, related spare parts and services. It also provides services for other passenger cars. Workshops, sales, after sale service depots and head office are the main functional centres in operation. Most of the senior executives are old recruits and do not really have any professional exposure. Many of the new young recruits are well-qualified management graduates. The company’s overall functioning is based on centralized control.

Young executives of the company now complain on issues like absence of performance-based promotions and wage-revisions, lack of clear communication and flow of authority, conservative approach to all market-related strategies etc.

It is also found that in workshops at Thane and South Mumbai the workers are under improper control. The workshops have become heavy loss making units (Except for other passenger cars served).

The president’s immediate botheration is productivity control and improvement. He has started investigating into alternate techniques available for improving productivity on both fronts, qualitative and quantitative.

Q.

Discuss the different qualitative and quantitative, long run and short run techniques for improving productivity, with special reference to this company.

 


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