Total productivity measurement and competitiveness: towards ensuring sustainable business performance in manufacturing organisations: a literature review

Abstract

In the current manufacturing environment, purchases and other expenses are representing the major proportion of total input. This is the main reason why total productivity models were developed to reveal the real improvements in productivity, because traditional labour productivity measures were considered as inappropriate for decision-making. It has been concluded that these models support emphasis also for quality improvement. However, total productivity measures still contain some shortfalls, i.e. the valuation of output between different periods is troublesome. Manufacturing organisations generally need to realise the importance of different partial productivities, and as well the requirements of different stakeholders. This paper provides critical assessment of all of these issues, using diverse literature from the field.