An analytical exploration of the theorized relationship between total productivity and cash conversion CYCLE

Naveen Tiruvengadam, Mario G. Beruvides

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

Abstract

The cash conversion cycle (CCC), a proxy metric used for the measurement and management of Working Capital (WC), has long been established in previous research as being crucial to organizational profitability. The same holds true for the measure of productivity. Intuitively, synergies between CCC and productivity are obvious: both influence profitability. This paper explores analytically this intuitive relationship between Total Productivity (TP) and CCC that is lacking in literature. The concept of TP is derived from the theory of Total Productivity Management, which acknowledges and includes in its framework the impact of non-operational factors on operations and as such states that WC influences productivity and thereby profitability. The results of such an analysis will assist engineering managers to understand this critical relationship in addition to providing the platform for further research into the predictability of health/profitability of an organization using either or both of TP and CCC.

Original languageEnglish
Title of host publication39th International Annual Conference of the American Society for Engineering Management, ASEM 2018
Subtitle of host publicationBridging the Gap Between Engineering and Business
PublisherAmerican Society for Engineering Management
Pages806-815
Number of pages10
ISBN (Electronic)9781510874640
StatePublished - 2018
Event39th International Annual Conference of the American Society for Engineering Management: Bridging the Gap Between Engineering and Business, ASEM 2018 - Coeur d�Alene, United States
Duration: Oct 17 2018Oct 20 2018

Publication series

Name39th International Annual Conference of the American Society for Engineering Management, ASEM 2018: Bridging the Gap Between Engineering and Business

Conference

Conference39th International Annual Conference of the American Society for Engineering Management: Bridging the Gap Between Engineering and Business, ASEM 2018
Country/TerritoryUnited States
CityCoeur d�Alene
Period10/17/1810/20/18

Keywords

  • Cash conversion cycle
  • Total productivity management
  • Working capital management

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