TUTCRIS - Tampereen teknillinen yliopisto


Productivity measurement at the factory level



OtsikkoTARC 2015 Trends in accounting research conference
AlaotsikkoWith International PhD Colloquium and Workshop 7-9 th october 2015, Lodz, Poland
JulkaisupaikkaLodz, Poland
KustantajaUniversity of Lodz, Poland
TilaJulkaistu - 7 lokakuuta 2015
OKM-julkaisutyyppiD3 Artikkeli ammatillisessa konferenssijulkaisussa
TapahtumaTRENDS IN ACCOUNTING RESEARCH CONFERENCE with International PhD Colloquium and Workshop - University of Lodz, Poland, Lodz, Puola
Kesto: 7 lokakuuta 20159 lokakuuta 2015


ConferenceTRENDS IN ACCOUNTING RESEARCH CONFERENCE with International PhD Colloquium and Workshop


The objective of this study was to develop a new partial productivity measurement method for the case company. The scope of this study was limited to factory-level productivity measurement.
Material costs and value of inventory were excluded from themeasurement. Labor productivity and capital productivity are the focus of the new method. The case company uses a make-to-order production approach, and it belongs to the mechanical engineering sector, as so many other companies in Finland do.
The developed model includes two main components: ROA and the capacity model. The Gold’s model and the American Productivity and Quality Center model (APQC model) have had the greatestinfluences on the structure of presented model. The model has been tested with data covering the last four years.
Strictly interpreted, the final result describes the impact of the combined effect of productivity changes and input price changes. The company representatives argued that it is crucial for them to know whether the efficiency of operations will increase, at least in such a way that it will at least cover inflation.
Realized productivity development was a pleasant surprise for the steering group. The fear that the intake of total assets would have decreased productivity proved to be wrong. The level of productivity changed nearly every month. One of the main driving forces behind the change is capacity.


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