Showing papers on "Productivity model published in 1987"
TL;DR: In this article, a factor model for evaluating the productivity of labor intensive construction activities is presented, based on the theory that many factors cause disturbances to crew performance and if these can be quantified and discounted from actual productivity data, one is left with an ideal productivity curve, which can be used to forecast future performance.
Abstract: The factor model for evaluating the productivity of labor‐intensive construction activities is described. The theory underlying the model is presented. The model states that many factors cause disturbances to crew performance. If these can be quantified and discounted from actual productivity data, one is left with an ideal productivity curve, which can be used to forecast future performance. Methods for collecting and combining data from various projects are presented and illustrated using actual productivity data from three commercial construction projects. Insight into the validity of the factor model is demonstrated by considering the effect of temperature and relative humidity on productivity. Multiple regression techniques are used to mathematically explain approximately 40% of the variability in the daily productivity data. Other statistical parameters are also described. The results of the weather model are compared to similar relationships reported by other researchers. The relationship developed...
195 citations
TL;DR: In this paper, the relative merits of the most commonly used measures of productivity for the purpose of assessing the productive and allocative efficiency of construction in the 1980s were discussed, and the authors concluded that the total factor productivity method is the ideal against which the other approaches should be judged.
Abstract: Productivity in the use of resource inputs is of critical importance to the construction industry. This paper is intended to discuss the relative merits of the most commonly used measures of productivity for the purpose of assessing the productive and allocative efficiency of construction in the 1980s. The paper concludes that the total factor productivity method is the ideal against which the other approaches should be judged. Both average labour productivity and average capital productivity suffer from serious problems in assessing the efficiency of contracting operations. However, under certain circumstances, either can provide an adequate alternative measure. Of the two main single-factor measures of productivity, capital productivity appears to be superior in most aspects to average labour productivity as a means of assessing the overall financial management of a construction firm. Notwithstanding the problems associated in contracting activities and also the difficulties inherent in obtaining suitab...
52 citations
TL;DR: The productivity model developed was able to explain over 70% of the productivity variation found in Cobol, Pick/Basic, and Focus implementation environments and could be used as a basis for project planning and control for different organizations, hardware environments, operating systems, or development methodologies.
23 citations
TL;DR: In this article, the authors describe a means for incorporating return on investment (ROI) as the improvement criterion in profit-linked total factor productivity measurement procedures and provide a mechanism to explain changes in profits due to productivity performance beyond the level associated with an ROI goal.
Abstract: This research note concerns total factor productivity measurement at the firm level. Specifically the purpose of the note is to describe a means for incorporating return on investment (ROI) as the improvement criterion in profit-linked total factor productivity measurement procedures. The expressions presented here provide a mechanism to explain changes in profits due to productivity performance beyond the level associated with an ROI goal. This is an extension of existing measurement procedures that utilize gross profit margin rather than ROI as the improvement criterion. The formulation presented here is more appropriate than the margin approach when ROI is the primary financial yardstick of the firm. In presenting this formulation, the ROI based expressions for calculating the type of information derived in a profit-linked total factor productivity measurement procedure will first be given. Then the use of these expressions will be illustrated through a case study.
20 citations
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TL;DR: In this paper, a micro-firm-based macro-simulation model is used to analyze the relationship between investment, productivity, and economic growth. But the results are inconclusive, and it is shown that unless diversity among economic units is taken into account, the results will continue to be inconclusive.
Abstract: This paper raises several issues concerning productivity analysis. An attempt is made to demonstrate the usefulness of a micro-based approach to productivity analysis which challenges some basic assumptions of conventional analyses based on aggregate production functions. With the help of a micro- (firm-)based macro simulation model it is shown if there are important differences among firms in economic competence, here represented by efficiency and investment behavior, the relationships between investment, productivity, and economic growth are much more complex and unpredictable than commonly assumed . The rate of technological progress as measured by the rate of change in best-practice technology seems to be less important than the elimination of inefficiency by closure of firms and/or by firms moving closer to their respective production frontiers. It is also shown that the conditions which determine firm borrowing for investment (involving their interpretation of past profitability and expectations based on current capacity utilization) are more important for productivity and economic growth than the total amount invested. In other words, it matters less how much is invested than who does the investing, and under what incentives. The implication for productivity analysis is that unless diversity among economic units is taken into account, the results are likely to continue to be inconclusive. What is needed is much more of an integration of micro and macro theory than has been accomplished thus far. In particular, economic competence must be included. The paper also tries to put productivity in the proper perspective, not as an object in and of itself but rather as a partial measure, at best, of economic performance at any level within the economy.
17 citations
TL;DR: In this article, the authors proposed a delivery-to-final-demand framework, a modified form of that first introduced by Domar, to identify the biases in the value-added model and propose adjustments necessary to remove them.
Abstract: The value-added model underlies current measures of aggregate productivity growth. Unbiased estimates result only if the economy is closed to trade in foreign-produced material inputs and all domestic intersectoral transactions are characterized by marginal cost pricing. Neither condition typically holds.
This paper identifies these biases and proposes a delivery-to-final-demand framework, a modified form of that first introduced by Domar. The rate of aggregate productivity growth is decomposed into terms identifying the contributions of total factor productivity growth within individual sectors, the reallocation of the economy's primary inputs among sectors, and changes in the allocative efficiency of markets for intermediate goods. The adjustments necessary to remove biases from existing value-added estimates are derived.
16 citations
01 Jan 1987
TL;DR: This paper demonstrates the feasibility of using an Expert System for the TPM to measure productivity of individual operatioonal units of a firm as well as the firm itself as a whole and highlights its advantages and limitations.
Abstract: During the last several years, company-level productivity measurement has become important as companies deal with deregulation, international competition, uncertain economic conditions, and complex technological environments. Various productivity measurement models have been proposed in the literature. One such model is the Total Productivity Model (TPM), developed in 1979. Computer programs have already been developed for this model in FORTRAN and BASIC to be used on various hardware configurations such as PRIME 400, UNIVAC 1100/80, IBM PC XT, and Apple Macintosh. Some earlier papers dealt with these programs in previous conferences for Computers and Industrial Engineering. In this paper, we demonstrate the feasibility of using an Expert System for the TPM to measure productivity of individual operatioonal units of a firm as well as the firm itself as a whole. Such an experience of productivity measurement with an AI/Expert System has been rarely documented in the literature, and hence, is expected to contribute to new knowledge. This paper presents an example of the proposed system and highlights its advantages and limitations. Future scope for research is indicated. The proposed methodology is generic enough for both manufacturing and service-oriented organizations.
11 citations
Journal Article•
9 citations
TL;DR: A continuous time model using optimal control techniques is presented which implies that a scientist's productivity will eventually decline with age, which is at variance withCole's empirical findings but consistent withDiamonds empirical findings.
Abstract: A continuous time model using optimal control techniques is presented which implies that a scientist's productivity will eventually decline with age. This implication is at variance withCole's empirical findings1 but is consistent withDiamond's empirical findings.2
9 citations
TL;DR: In this paper, a price-accounting approach was used to measure total factor productivity growth in Canadian manufacturing, at the two-digit level, over the period 1965-80.
Abstract: This papers user a price-accounting approach to measure total factor productivity growth in Canadian manufacturing, at the two-digit level, over the period 1965–80. Its purpose is to describe how given productivity improvements have been apportioned among labour, capital, materials and government through an increase in the price of these factors or through an increase in taxes levied on factor inputs and ‘consumers’ through a decrease in the industry selling prices.
8 citations
Posted Content•
TL;DR: In this paper, the authors used the 1973/74 and 1979/80 input-output tables to determine the contribution of different inputs, making up the reported fixed assets and raw materials figures in the Annual Survey of Industries, to total output and value added across the large scale manufacturing industries of India.
Abstract: The paper uses the 1973/74 and 1979/80 input-output tables to determine the contribution of different inputs, making up the reported fixed assets and raw materials figures in the Annual Survey of Industries, to total output and value added across the large scale manufacturing industries of India. Applying appropriate deflators provides us with the "true" deflated values for the variables. These variables, together with appropriately deflated output and value added figures, are used to estimate Total Factor Productivity (TFPG) rates for the large scale manufacturing industries using the estimating equations of Solow (1957) and Kendrick (1961). We offer explanations for the movements in the TFPG noted for the 1973/74 to 1978/79 period by resorting to our estimates of the capital and labour productivity and to capital intensity figures for the same period. These, as well as the demand for the products of the industries are found to be crucially important in explaining the fluctuations in productive efficiency for almost all of the sectors studied.
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TL;DR: In this article, the authors explored the relationships between all these measures through a modelling approach to determine the conditions under which productivity contributes to improved corporate performance, and some examples demonstrate the use of the proposed methodology.
Abstract: The discussion of productivity is usually dominated by considerations of the productivity of labour, but in general terms a productivity ratio may be defined as the number of physical units of output per unit of resource input. This gives rise to many productivity ratios and it can be shown that they are inter-connected, so that an improvement in one ratio can be achieved at the expense of others. Furthermore, an improvement in labour productivity need not always result in reduced unit costs and increased profitability. The relationships between all these measures need to be explored through a modelling approach to determine the conditions under which productivity contributes to improved corporate performance. Some examples demonstrate the use of the proposed methodology.
TL;DR: In this paper, two total factor productivity equations for the generalized cost system were derived and two total cost productivity equations were derived for the generalized cost system with a generalized cost function.
TL;DR: In this article, an empirical correlation between nitrate concentration and new production can be understood by a simple productivity model and several models are then constructed to examine the functional relationship between total production and surface chlorophyll.
TL;DR: In this article, a biomass productivity model and a soil loss model were used to simulate effects of mining and erosion on the productivity potential of a 600-ha site and the results showed that biomass productivity appears more likely to decline due to mining than because of erosion.
01 Jan 1987
TL;DR: In this article, the effects of investment on productivity rates were analyzed based on the assumption that new investestments reflect, among other things, the adoption of new technologies which are embodied in new equipment.
Abstract: The purpose of this paper is to analyze the effects of investment on productivity rates. The objective is to use these insights in order to estimate possible outcomes of various growth paths on future productivity trands. The analysis is based on the assumption that new investestments reflect, among other things, the adoption of new technologies which are embodied in new equipment. The results indicate that in the long run a positive effect of investments on productivity prevails. However, in the short run, the industry goes through an adjustment process where productivity rates may decline.
TL;DR: The model of labor productivity for the U.S. manufacturing sector was developed in this paper within the context of a three-input production function where time entered as a proxy for technical change.
Abstract: The model of labor productivity for the U.S. manufacturing sector was developed in this paper within the context of a three-input production function where time entered as a proxy for technical change. The growth rate of labor productivity was found equal to the share-weighted contributions from growth in the capital-labor ratio, changes in the composition of the capital stock, growth in the money-labor ratio, and total factor productivity.