Organisational learning and development: lessons from productivity analysis

This study assists the productivity analysis of a large electronic manufacturer in Thailand. This company is to be referred to as the STT. The problem stems from the underlying concern on how to effectively utilise productivity information and strengthen organisational learning and development at the plant level. The term 'productivity' is defined as the Value-added Cost (VAC) divided by the total cost. Its VAC represents the total value of the outputs subtracted by the material cost. Four Productivity Networks (PNs) from Harper's (1984) concept are developed for this task. The data for productivity measurement have been collected over the period of 18 months. The productivity information that reflects the areas of concern suggested by the STT's senior management is analysed. The results imply that the ratios of the Variable Cost-to-Operation Cost, Operation Cost-to-Total Cost, VAC-to-Other Production Cost and Fixed Overhead Cost-to-Operation Cost greatly impact its overall productivity level. Thus, the high-impact elements are the variable, operation and fixed overhead costs. Finally, according to the STT's senior managers, the study helps improve organisational learning and development, deemed to be important for long-term operational competitiveness.