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Challenge ?Productivity Measurement 169。The McGrawHill Companies, Inc., 1998 Irwin/McGrawHill 11 Manufacturing’ s Role in Corporate Strategy ?Stage 1Internally Neutral – Minimize manufacturing’ s negative potential – Management control systems ?Stage IIExternally Neutral – Achieve parity with petitors – Follow industry practice ?Stage IIIInternally Supportive – Support the business strategy ?Stage IV Externally Supportive – Manufacturingbased petitive advantage 169。The McGrawHill Companies, Inc., 1998 Irwin/McGrawHill 19 10,000 units/500hrs = 20 units/hour ... ... or we can arrive at a unitless figure (10,000 unit*$10/unit)/(500hrs*$9/hr) = Can you think of any advantages or disadvantages of each approach? ExampleLabor Productivity 169。The McGrawHill Companies, Inc., 1998 Irwin/McGrawHill 15 MIT Commission on Industrial Productivity 1985 Remendations ?Recognize that the labor force is a resource to be nurtured, not just a cost to be avoided. ?Get back to basics in managing production operations. – Build in quality at the design stage. – Place more emphasis on process innovations rather than focusing sole attention on product innovations. 169。The McGrawHill Companies, Inc., 1998 Irwin/McGrawHill 6 WorldClass Manufact