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A systematic approach called Skilled Labor Based Productivity Improvement Model (SLBPIM) is developed in this book. It provides a qualitative and quantitative model to improve and maintain the productivity level by observing the production, identifying waste, revealing the cause of loss and finding the solution. SLBPIM is built on two models. One is a qualitative model The Three Step Procedure (3SP) and the other one is a quantitative model Costing of Loss and Solution (CLS) . The approach developed in this book provides a series of tables and calculation structures. These could be modified to emphasize any particular concern without hurting the overall structure or information required by the model. This approach reduces the level of subjectivity in the decision process because of the standardization applied in the model. This approach could be used in manufacturing, as well as in the other industries such as banking, health or government.