Profile Productivity Measurement
Producing a product involves numerous critical such as labor, material, capital, and energy. Profile
measurement provides a series or 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 material. Let’s return to the Navada Company example. As before, Nevada implements a new production and assembly process in 2007. 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 2006 and 2007 are available: