Problem: Productivity is measured by the ratio of outputs to inputs. Some organizations use a partial measure of productivity to measure actual operations, such as a restaurant using a number of customer meals per labor hour.
Assume that you are the operations manager of a local restaurant. You currently measure the following data:
- Labor hours
- Raw materials
- Customer meals
- Capital investments
Based on the above information, how would you measure productivity at the restaurant? Be sure to include single-factor and multifactor measures. What are some simple ways you would use to improve productivity? As an operations manager, why is productivity important to you?