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Potential productivity: Concepts and application

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  • Silver, Mick
  • Bennett, Alan

Abstract

This paper is concerned with the meaning and measurement of potential productivity. Potential productivity is the difference between the actual and most efficient (optimal) productivity level. A number of concepts of potential productivity are outlined and their managerial implications discussed. Measures based on operating and lost time, peak output levels, estimating a capacity production function and work study (percentage utilisation of labour) are compared for the envelope-making division of a UK manufacturing company.

Suggested Citation

  • Silver, Mick & Bennett, Alan, 1986. "Potential productivity: Concepts and application," Omega, Elsevier, vol. 14(6), pages 443-452.
    • Handle: RePEc:eee:jomega:v:14:y:1986:i:6:p:443-452
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