Productivity is measured by the ratio of outputs

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Productivity is measured by the ratio of outputs to inputs. Some organizations use a partial measure of productivity to measure actual operations, such as a restaurant using number of customer meals per labor hour.

Assume that you are the operations manager of a local restaurant. You currently measure the following data:

• Labor hours
• Raw materials
• Customer meals
• Capital investments

Based on the above information, how would you measure productivity at the restaurant? Be sure to include single-factor and multifactor measures. What are some simple ways you would use to improve productivity? As an operations manager, why is productivity important to you?

Reference no: EM1388356

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