Accession Number : ADA138045

Title :   Contractor Productivity Measurement Practices.

Descriptive Note : Interim rept. Oct 82-Oct 83,

Corporate Author : ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA

Personal Author(s) : Norton,M G ; zabel,W V

PDF Url : ADA138045

Report Date : Oct 1983

Pagination or Media Count : 92

Abstract : The objective of this study is to develop and test measurement systems which (1) are designed to complement IMIP by providing a productivity measurement and tracking system and, (2) may provide a basis for contract incentives to motivate contractors to improve their productivity through methods changes, management improvements and other means in addition to capital investment. This interim report describes the results of a survey of contractor productivity measurement practices and the productivity measurement systems identified to date. Contractors responding to the survey ranked productivity fifth in importance as a performance evaluation factor after profitability, effectiveness, quality, and efficiency. There was no evidence of a total factor productivity measurement system implemented by the survey respondents, although some attempts were being made to develop such. Production cost visibility varied widely among the survey respondents, but all could provide direct labor and material costs through work center tracking. Unfortunately, direct costs constitute a small and decreasing percentage of total cost, and therefore are becoming less useful as the sole basis for productivity measurement. The most popular producitivity related indices being tracked were value added/employee and a comparison of standard hours to actual hours. It appeared that investments were mostly for competitive and technological reasons rather than simply for cost reduction on a current contract.

Descriptors :   *Contracts, *Productivity, *Contract administration, *Government procurement, Personnel, Performance tests, Performance(Human), Work measurement, Motivation, Industries, Investments, Finance, Industrial equipment, Tracking, Surveys, Methodology, Models, Cost analysis, Cost effectiveness, Savings, Army research

Subject Categories : Administration and Management
      Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE