THE ENERGY CONVERSION EFFICIENCY PERSPECTIVE ON PRODUCTIVITY

摘要

Engineering managers use productivity measures for performance evaluation and decision-making. The common assessment of productivity normally considers a simple fractional relationship of revenues over costs, where desirable productivity occurs when the system delivers higher revenues than the volume point of costs, leading to a productivity index value larger than one; implying that the output is greater than the input. However, the second law of thermodynamics states it is impossible to convert energy completely into work in a closed system. Contemporary productivity tools do not follow this law because they assume open systems in which energy can enter and exit a system, and they do not concern themselves with externalities imposed on meta-systems. This leaves an opportunity to create a different perspective on the efficiency of work. This paper uses the laws of thermodynamics to develop a formula that shifts the perception of productivity measures. The dynamics of the formula are explored, and comparative examples show the advantages and disadvantages of this theoretical approach. Results of a pilot survey show that the new proposed method does not have an impact on managerial decisions.