A bottom-up approach for productivity measurement and improvement

Purpose - The steady incline in oil prices combined with the recent credit crisis and downturns in financial markets has driven organizations to re-evaluate their manufacturing processes and bottom line. The purpose of this paper is to suggest a bottom-up approach that may be used by firms in planning, managing and forecasting productivity improvements. Design/methodology/approach - A multiple-case study approach was used: two comprehensive cases and seven short cases were used to illustrate the model. Findings - The lack of understanding of the relationship between productivity, profitability and performance has led to the application of piece-meal solutions for problems in productivity. Bottom-up approach in improving productivity will provide better results than top-down approach. Originality/value - This paper describes the bottom-up approach which has been successfully used for managing productivity improvement initiatives.