Profile Productivity Measurement
Producing a product involves numerous critical inputs such as labor, materials, capital, and energy. Profile measurement provides a series or a vector of separate and distinct partial operational measures.
Profiles can be compared over time to provide information about productivity changes.
To illustrate the profile approach, we will use only two inputs: labor and materials.
Let’s return to the Ladd Lighting example.
As before, Ladd implements a new production and assembly process in 2008. Only now let’s assume that the new process affects both labor and materials. Initially, let’s look at the case for which the productivity of both inputs moves in the same direction. The following data for 2007 and 2008 are available:
Profile Productivity Measurement Producing a product involves numerous critical inputs such as labor, materials, capital, and energy. Profile measurement provides a series or a vector of separate and distinct partial operational measures.Profiles can be compared over time to provide information about productivity changes.To illustrate the profile approach, we will use only two inputs: labor and materials.Let’s return to the Ladd Lighting example. As before, Ladd implements a new production and assembly process in 2008. Only now let’s assume that the new process affects both labor and materials. Initially, let’s look at the case for which the productivity of both inputs moves in the same direction. The following data for 2007 and 2008 are available:
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