When to measure productivity: lessons from manufacturing and supplier‐selection strategies

Abstract

Purpose This study aims to identify the set of circumstances that requires productivity information. It is part of an effort to improve productivity measurement. For this research, when to measure productivity is addressed by linking with manufacturing and supplier‐selection strategies. Design/methodology/approach A survey is developed in order to gain insights into three areas: manufacturing strategies, supplier‐selection strategies for maintenance services (MS), and productivity. The development and distribution of a survey are conducted jointly with the Federation of Thai Industries. There are 40 companies completed the survey. The analysis on top executives' opinions, by the correlation analysis, is based on a two‐stage manner. The first stage is to list a circumstance that indicates the positive relationships between manufacturing and supplier‐selection strategies. The second stage is to match each circumstance with productivity information. Findings Altogether, they are nine circumstances that need productivity information. For example, when delivery is selected as a manufacturing strategy and quality is chosen as a supplier‐selection strategy for MS, productivity measurement is required for an effective management process. Practical implications Awareness of the relationship between strategic decisions and productivity information helps strengthen performance measurement and subsequently a management process. A strong management process can drive organizational policies and objectives. Originality/value The more insights into when to measure productivity have been urged by several prominent researchers. A research methodology in this study is also perceived to be useful for possible future applications.

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