Synopsis: Communication For Productivity
Letters written to some 7500 Workers / Managers / Union Leaders, following a period of strike / Go slow / Murders (1979 - 1987), at Mumbai factory of Larsen & Toubro Ltd. This direct / open / honest communication led to a remarkable atmosphere of trust between Workers and Management, which, in turn, increased productivity at 3% per year (ave).
26 Mar 1980
ALL MANAGEMENT MEMBERS
OF PRODUCTIVITY COMMITTEE MEETING (POWAI LEVEL)
STANDARDISATION OF FORMATS ND PRESENTATION METHODS
Further to my Circular of March 24, 1980, I invite your attention to my earlier Circular of October 24, 1979 on the same subject, reproduced below for your ready reference:
"HOW TO START A PRODUCTIVITY EFFORT".
I draw your particular attention to paragraphs on 'Diagnosis' & 'Measurement'. I am fully aware that, in a diverse operation like ours, no single measure of productivity (output), using
identical 'units' of measurement for the 'output' and 'input' could serve the purpose of all the manufacturing departments. Even for 'Production',
different departments may be compelled to use different units of measurement.
What is however, important is
1. 1. That all manufacturing departments/shop determine, once for all,
would follow in the months and years to come. This
CONSISTENCY in the use of a_ definition would permit
monitoring of productivity improvements over the coming
2. 2. That all manufacturing departments Standardise the formats in
which they would publish their monthly reports on- Production
and - Productivity.
Such monthly reports may include the monthly data as well as
the cumulative data (from the base month of January 1979?) to
both the parameters viz. Production and Productivity.
3. That as far as possible, the definitions of
- Production and
Should be in units of physical outputs (and inputs )
'SP/TP' etc., a method of discounting these for the
inflation must be established. The numerator must be
I have already requested the perspective Planning Dept. to evolve one or more 'product Price index' series using published prices of a large number of industrial machinery/ agricultural machinery/electrical machinery/construction machinery/passenger and goods transport vehicles/chemical -pharmaceutical machinery/consumer capital products etc.
By a copy of this note, I am requesting CMS/VM to approach you to finalise
- - the definitions
- - the formats
for your area of operations. I am convinced that a consistent use of these is the only way to know if we are moving and if so, in what direction."