Productivity functions as a managerial tool in Israeli ports

Abstract

Research was undertaken with the goal of developing productivity functions that explain the changes in the productivity is Israeli ports by means of changes in various explanatory factors. Productivity is measured by an engineering aproach, i.e. actual performance is measured against engineering standards. Partial productivity indices are worked out for each factor separately and aggregated to yield a total productivity index, which is calculated in two ways: one uses updated standatds as a basis of comparison (giving local productivity) and the second uses comparison standards of a basic period (yielding comparative productivity figures). The paper examines the theories and assumptions within the ports of Israel, which offer a good example for analysing productivity because they are characterized by significant developments in the quality and quantity of inputs. The ports have experienced many technological developments that have had a crucial effect on the nature of their activity. The explanatory factors were examined, out of which were chosen those in each family that corelate best with productivity. A linear programming model is generated for developing productivity functions with an objective function of minimum deviations between calculated and actual productivity. The constranints in this model ensure that the coeficients remain within ranges that are meaningful with regard to the problem uner examination. Productivity measures based on the engineering approach and the productivity functions developed herein can be engineering approach and the productivity functions developed herein can be utilized as aids in managing ports and in determining what steps should be taken to improve productivity.