Productivity

Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

Productivity is the overall efficiency of production of services or products expressed by any measure. Such measures of productivity are usually measured as a ratio of a single output to a single input, which means an aggregated output divided by a specific period of time spent on a production process, i.e., output per unit of input. Productivity also can be measured by the ratio of average cost per units of input, and average sale cost per units of output. The concept of productivity is extremely important to management because it enables managers to properly align their resources with their goals. The concepts of productivity and cost-based pricing are at the heart of most management studies, as are the various management tools such as cost analysis, PPE, pricing, and production scheduling.

Productivity measurement is an essential management function because it is often used to determine whether there is a need to make adjustments in processes or products, or whether there are ways to reduce costs without compromising service quality. There are many approaches to productivity measurement. In a production environment, productivity may be measured by an observer, who watches raw materials being made, or by a machine, which measures finished goods after processing. Input-output tables show how changes in inputs affect outputs. And there are numerous methods for measuring productivity, including total factor productivity, productivities, cost cycle productivity, cycle times, and internal/external factors.

Productivity can also be measured in terms of the ratio of output to input. Productivity ratios are expressed as the ratio of sales revenue to sales expenditure (in constant dollars), a common measure of productivity across many industries. But a more useful measure is the productivity-to-cost ratio, which compares the cost of producing an item to the cost of buying it, or of producing a service to the cost of providing it. The higher the productivity-to-cost ratio, the better the economic well-being of the company. Also called KPE, this ratio measures indirect productivity, which refers to indirect employment, saved sales, and other economic benefits derived from increased production, as opposed to direct employment, direct sales, and other factors.