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Indonesian Supplies Sales

Definition of the Productivity and its measurement with outsourced activities

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Productivity can be defined as the efficiency with which resources are used to produce goods or services. It is a measure of how much output is produced per unit of input. When it comes to outsourced activities, productivity can be measured by evaluating the output produced by the outsourcing partner relative to the resources invested in the activity.

To measure productivity with outsourced activities, it is important to establish clear performance metrics that align with the goals of the outsourcing arrangement. These metrics may include measures such as:

  1. Quality: The quality of the work delivered by the outsourcing partner can be evaluated based on established quality standards and customer feedback.
  2. Timeliness: The ability of the outsourcing partner to deliver the work on time as per the agreed upon deadlines can be measured.
  3. Cost-effectiveness: The cost of the outsourcing arrangement can be compared to the cost of producing the same work in-house to determine if the outsourcing arrangement is cost-effective.
  4. Efficiency: The ability of the outsourcing partner to complete the work with minimal waste of time, effort, and resources can be evaluated.
  5. Customer satisfaction: The satisfaction of the end-customer with the output delivered by the outsourcing partner can be measured through surveys or feedback mechanisms.

By measuring productivity with these metrics, organizations can gain insights into the effectiveness of their outsourcing arrangements and identify areas for improvement. It is important to regularly evaluate and monitor productivity to ensure that outsourcing remains a viable strategy for achieving business objectives.