2011-10-Man-301-Ol010 Written Assignment 7

2011-10-MAN-301-OL010

Written Assignment 7

Productivity is the relationship between the amount of input needed to produce a given amount of output and the output itself; usually expressed as a ration. By measuring the productivity of the US auto industry by a independent consulting firm it was determined that Toyota is the most efficient auto maker in North America. Part of their success is their increased focus on reducing waste and a commitment to their core competencies and looking for way to continuously improve. The US auto maker has to adopt a similar model and process to catch up to it’s foreign competitors. Deming believed that company’s focus on improving quality would accrue fundamental production benefits. In an overall management scheme if Deming’s 14-point system is adapted and effectively measured they will dramatically reduce cost and increase productivity in American industries.

I don’t think that America has an issue with increasing productivity. The American worker works the more hours per week than the average industrialized nation. The difference in rankings can be explained by the fact that annual working hours per person employed are considerably higher in the United States than in the majority of European economies. Part of the issue that may be driving the perception of “lack of American productivity” is our new global economy and the world’s ability to compete against American industry. If we look at the North American Free Trade Agreement (NAFTA), since the start of the Canada-United States and Mexico free trade agreement, Canadian and Mexican manufacturing has gone through a tremendous amount of restructuring. From 1990-1997, manufacturing sector employment remained below 1988 levels. And then starting in 1994, employment began to recover and in 1998 employment exceed the pre-agreement levels. But before the agreement was implemented, manufacturing employment was already declining. With the free trade agreement, there was a...