Explaining Observed Productivity Differentials Between Plants: Implications for Operations Research

Published Online:https://doi.org/10.1287/inte.15.6.3

Within the same company, several factories, all essentially producing the same products the same way, often differ widely in productivity and profitability. Twelve factories belonging to three companies were studied to discover the impact of managerial policies on productivity. The factories' total factor productivity was measured monthly over several years and related to managerial policies.

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