Productivity, quality and performance measurement for advanced manufacturing technology

The relationship between productivity and quality is featured, with a total quality management perspective. A total productivity measurement approach is given, recommending replacement cost capital input. In the capital-intensive advanced manufacturing technology (AMT) scenario, traditional partial measures of productivity are not appropriate. The balance of labour and capital productivity in pursuit of high total productivity is illustrated. Outputs and outcomes of the productive process are highlighted. An integrative philosophy is provided to link the organisation to technological choice and operations strategy in order to obtain both an ethical culture and a competitive advantage.