Service Management, Student Workbook: An Integrated Approach to Supply Chain Management and Operations

13. Service Productivity and Measurement of Performance

13.8. Summary of the Chapter

This chapter focused on productivity and efficiency of service operations. First, we discussed the basic concepts relevant to productivity and defined productivity as the ratio of output to input. Productivity may be computed for a single output and a single input or multiple outputs and inputs. Most organizations produce more than one kind of output and use several kinds of inputs. At the national level, labor productivity is the most frequently used productivity measure. Growth in labor productivity is used as an indicator of improvement in the standard of living of a country. In addition to being an indicator of standard of living, productivity growth influences ...