Purpose -The steady incline in oil prices combined with the recent credit crisis and downturns in financial markets has driven organizations to re-evaluate their manufacturing processes and bottom line. The purpose of this paper is to suggest a bottom-up approach that may be used by firms in planning, managing and forecasting productivity improvements. Design/methodology/approach -A multiple-case study approach was used: two comprehensive cases and seven short cases were used to illustrate the model. Findings -The lack of understanding of the relationship between productivity, profitability and performance has led to the application of piece-meal solutions for problems in productivity. Bottom-up approach in improving productivity will provide better results than top-down approach. Originality/value -This paper describes the bottom-up approach which has been successfully used for managing productivity improvement initiatives.
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