Potential productivity: Concepts and application

Mick Silver and Alan Bennett

Omega, 1986, vol. 14, issue 6, 443-452

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.

Date: 1986
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