Journal of Quality Engineering and Management

Abstract In order to improve productivity, Article 5 of the Sixth Development Plan Law mandates the implementation of the productivity management cycle, which states that "executive bodies and the armed forces are obliged to focus on productivity growth in the economy, while implementing the productivity management cycle in the complex." "Provide
the necessary arrangements for the operation of this cycle in the units under its auspices in
coordination with the National Productivity Organization of Iran and submit its annual report to the National Productivity Organization." It is also stated in the program that from the projected 8% economic growth, 2.8%, ie equivalent to 35% growth, should be obtained from the total factor productivity.
There are several models for measuring productivity, among which the model with financial ratios approach has been used in this paper. There are also various methods for measuring productivity. In this paper, the value-added method is used to calculate partial and total productivity indices in Method Company. Two financial statements, balance sheet and profit and loss statement in the period of 1391 to 1395 as input data as well as standard worksheets of the Productivity Center of Iran to measure productivity indicators are entered into a software designed to output Those productivity ratios and related graphs are similar in the method company and in the industry. Multiple regression was used to select the appropriate approach to improve productivity and show the effect of independent variables (partial productivity indices) on the dependent variable (total productivity), followed by material productivity as the first priority and productivity. Manpower, energy and capital were identified as the next priorities for improvement in Method Company.