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Productivity The purpose of productivity performance measurements is to measure the bank against itself and against other financial institutions in its market area and elsewhere. Productivity performance measurements can be used by cost center managers to determine how well they themselves, their cost center, and their employees are performing. These measurements also can be used by department managers to compare month-by-month or year-by-year productivity. From these comparisons a manager may identity potential trends in productivity. 18.3 Performance Measurements Quality In addition to measuring productivity, the proof managers may also measure the quality of the work. For example, the manager may determine that the average proof operator in the department makes one error per 1,000 items encoded. By comparing that error rate to previous error rates in the same department, the proof manager can identify trends. The proof manager can also measure the quality produced by his or her shop versus another institution. The proof manager may be able to increase the number of encoded items per hour and reduce the number of errors. 18.3 Performance Measurements In addition to measuring performance and making comparisons, many financial institutions also establish performance standards by function for both productivity and quality. For example, the proof manager, after determining the current level of performance, may establish the performance standard of 1,600 items per hour per operator. Then the manager can implement programs for increasing productivity to that performance standard. The same is true for quality standards. 18.4 Performance Standards Other examples of performance standards for improving quality might be that statements will be mailed within one business day of the statement date, or that no customer will wait in line any longer than 5 minutes, or that no customer will have to hold longer than 30 seconds when calling the customer service department. Altho
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