Lean Definition

Productivity Increase

Productivity Increase is the primary definition here is the “plant-wide increase in annual value-added per employee, based on total employment, not just direct labour”. Value added should be calculated by subtracting the cost of purchased materials and services from the value of shipments. The best plant entry form also includes a secondary calculation, which many manufacturers prefer to use: increase in sales per employee. ”where possible, Best plant candidates should compute and report five-year productivity increases using both calculations.