ABSTRACT

Productivity improvement is improving employees' living standards by ensuring fewer working hours, higher wages, and better jobs, for instance. Productivity improvement finds solutions for simple and higher labor-intensive work; it has been improved through work content improvement with IE, industrial engineering, such as methodologies, mechanization, automation, and ergonomics. Productivity improvement never advocates firing people; productivity improvement and rationalization are totally different activities for company. The key to any waste alleviating project is to think about smart working methods rather than the trendy, sometimes impractical ways that may have worked for a biggest, more profitable company. The solution is to keep balance between reduced output and required input. The company reduces headcount to keep balance or to meet output reduction due to sales volume reduction. The interesting point to the three factors of M, P, and U of productivity are that those are possible to get a synergism effect as total productivity.