Interaction between Productivity, Quality and Profitability | Service Management
RELATIONSHIP BETWEEN QUALITY AND PRODUCTIVITY FUR FURNITURE QUALITY MANAGEMENT NAME: IZZAH AZIMAH BINTI. Productivity and quality are integral components of organisations' operational strategies. Productivity plays an important role at both macro and micro levels. Construction productivity in Palestine. Cost associated with construction safety, quality and productivity Relationship between safety, quality and.
Measurement and reinforcement of the appropriate behaviors must also occur. Task instruction, developing task procedures, and making observations to reinforce work being accomplished according to plan is essential to productivity.
Quality The Quality of the initial installation of construction materials can be a key factor in the profitability of many projects. Making crafts people aware that they should accomplish their tasks according to a standard e. Measurement to determine that these critical activities are occurring is vital, but there must also be reinforcement for doing the work correctly according to agreed-upon standards. Deficiencies in quality manifest in a variety of ways, chief among them is rework.
The cost of rework is tremendous.
- Interaction between Productivity, Quality and Profitability | Service Management
- Journal of Healthcare Engineering
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Research performed by the Business Roundtables Construction Industry Cost Effectiveness Project concluded that losses in production primarily resulted from absenteeism and turnover. The root cause of this is workers performing the jobs in unsafe working conditions and having to perform excessive rework.
Journal of Healthcare Engineering
Installing work usually includes selecting the material, purchasing the material, transporting it to the workforce, unloading it, staging it, and installing it. The labor to install the material has a similar sequence of events.
When things are not done according to standard, the originally installed work has to be removed and then all of the installation steps repeated. The cost of rework can very easily be three times the original budget. If the opportunity cost of having workers ignore the work they should be working on while they were removing work and then reinstalling it is considered, then the cost could be five times the original amount.
Rework can also cause collateral delays and disruption to surrounding work. Although the amount of rework is not the only measure of quality, it is a key indicator of how much attention is being paid to the concept of quality. Safety The Occupational Safety and Health Administration OSHA indicates that the construction industry continues to have the highest work place injury rate of any major sector. In the Bureau of Labor statistics reported that the construction industry ranked first in both fatality and injury rates, a number that has not changed in In other words, the study results indicated that in order for less efficient hospitals reduce their undesirable outcomes, they must use their resources more efficiently.
Productivity and Quality
Therefore, their relative efficiency improves. Nayar and Ozcan [ 3334 ] assessed the relationship between hospital efficiency and quality by using quality measures as outputs in DEA models.
The findings of these studies indicated that efficiency improvement can be achieved without compromising quality. The objectives of this study are twofold.
The first objective is to assess the relative efficiency of EDs with respect to quality measures. In other words, we aim to evaluate how efficiently EDs transform their input resources into quality outputs.
Oftentimes, it is difficult to achieve both efficiency and quality. Understanding the factors associated with this relationship may help EDs develop improvement strategies and assist external healthcare organizations in determining incentive-based policies.
Data This study combined two data sources to investigate the association between ED efficiency and quality and the factors affecting this relationship. The Emergency Department Benchmarking Alliance EDBA data include EDs that share their resource levels and operational measures with their members for benchmarking and performance improvement purposes.
The DEA models may focus on minimizing the use of inputs to produce given outputs input-oriented or maximizing the level of outputs using given inputs output-oriented. This study developed an input-oriented DEA model because we sought to evaluate how efficiently EDs employed their key resources to optimize various ED quality measures.
Evaluating the Relationship between Productivity and Quality in Emergency Departments
We solve the following linear programming problem N times to obtain the relative efficiency score of each DMU: Constraints 2 — 4 mean that the linear combinations of the benchmarking group outperforms or is the same as where constraint 3 is to incorporate nondiscretionary input variable [ 36 ].
This study employed four inputs and four outputs to assess the relative efficiency of the EDs, and Table 1 depicts the data elements. These inputs are the most critical and expensive ED resources that directly impact patient care. When performing DEA, it was assumed that BED is a nondiscretionary variable because it could not be adjusted at the discretion of ED managers, at least in the short-term. Outputs included the following ED quality measures: PPD was included because it significantly impacts care provider workload, which affects quality of care [ 3839 ].
It should be noted that the reciprocal of the reported values is used for LWBS and PAIN because lower values of these variables represent better quality of care delivered, while DEA usually assumes that more outputs contribute to higher efficiency. Inputs and outputs of DEA models. Multinomial Logistic Regression To understand whether or not EDs that provide high quality of care also produce the outputs in an efficient manner, we classified the EDs into four categories based on their performance levels.
High efficiency refers to an efficient frontier ED i. Hence, the EDs are classified into the four categories as follows depicted in Table 2: Classification of EDs based on efficiency and quality.
We employed multinomial logistic regression to investigate the relationship between ED efficiency and quality performance and the factors affecting this relationship.
EDs in categories 2 and 3 deviated from EDs in category 1, either for quality or for efficiency. However, EDs in category 4 significantly differed from those in category 1. To focus the analysis on identifying ED characteristics that contribute to compromised efficiency or quality, we included only the EDs in the first three categories in the multinomial logistic model.
Let denote the probability that the ith observation falls in the jth category of the response variable; that is. These six regressors described in Table 3 represent operational and structural characteristics of the EDs that may be associated with the relationship between ED efficiency and quality performance.