What causes low levels of productivity?

Companies with a low level of productivity could get much more work, if freed from those factors that hold them back from unlocking their potential. This stalemate with low productivity leads to wasting money and losing ground to competitors. Knowing the reasons why your company’s productivity is not at the levels it should be is of fundamental importance to find the most suitable solutions to improve productivity and profits.

Three main causes of low productivity

Sometimes company productivity over time risks decreasing and being able to trace it back to the performance of the past may not be such a simple undertaking. However, do we know what the causes are?

The main causes of low productivity for a manufacturing company are:

  • Personnel;
  • Processes;
  • Tools.

Let’s analyze them in more detail:

1. Uninvolved staff

People are a key factor for the success of a company; motivation, passion and commitment are among the first characteristics useful to increase production efficiency. Making sure your people are motivated and ready to pursue “continuous improvement of your company” are the two key points.

2. Inefficient processes

Once the right people are identified and motivated to achieve business improvement, low levels of productivity can be caused by incorrect, complex or non-functional processes. Often there is a need to review or simply validate processes on a regular basis to ensure an increase or maintenance of productivity.

3. Obsolete systems

When a company uses outdated and now unsuitable methods to achieve desired goals, its productivity decreases significantly. For example, if one company uses software to automatically record and track data  and another collects it manually, the productivity of the second company will in all probability be much lower, this is because the person who collects and tracks the data will hardly have time to take care of other matters. However, companies can increase their productivity by streamlining and automating processes in order to reduce the work needed to complete tasks.

Accelerate Supply Chain to increase productivity

To increase productivity, it is necessary to act on the three main causes, highlighted above.

Learn how to increase your company’s productivity by speeding up the production planning process in the following article: click here

Accelera la supply chain - Copia

Do you think your company can increase productivity?

Do you think your company can increase productivity by improving processes or equipping itself with more modern systems? Reorganizing your processes and supporting them with the right tools in order to increase productivity and business competitiveness is a complex path that requires the support of specialized companies. Manufacturing companies with this objective find in Cybertec the advice and tools to increase productivity by maintaining and improving business variables such as service level and inventory turn-over. Contact a Cybertec expert to learn more about how your company can improve productivity. 



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