Effects of Scheduled Overtime on Labor Productivity: A Quantitative Analysis

As overtime efficiency decreases, the research found that there was an increase in disruptions. The most consistent increase occurred in the category of resource availability. It is concluded that this increased difficulty in providing resources is the root cause of losses of efficiency. (SD-98, p. 45)

The Factor Model is a credible representation of labor productivity. The basis for this conclusion is that the disruptions were found to be strongly correlated to performance. The simplicity of the Factor Model makes it easy to understand how an overtime schedule affects performance and how to plan and manage an overtime situation. Using the Factor Model, it is easy to understand how the effects of scheduled overtime can be very detrimental to labor productivity. (SD-98, p. 6)