Productivity

PRODUCTIVITY
What is it? Why do we need it? How do we measure it? How do we improve it? How do we implement it ?

RESOURCES OF AN ORGANIZATION
Whether Public or Private;The resources that are available to them are: Land & Buildings Materials Plant, Machines & Equipment Energy People Money

DEFINITION OF PRODUCTIVITY
Very simply,

Productivity = Output Input For any type of organization

EXAMPLES OF OUTPUT
Whether the organization is public or private the outputs are ; Accomplishment of a task Length of an output Distance travelled Number of pieces produced Weight of production

EXAMPLES OF OUTPUT(Contd.)
Volume of output Value of output No. of documents processed Time taken to carry out a job No of jobs attended No. of customers served

EXAMPLES OF INPUT
Labour force or man hours, man days. Etc.. Labour cost (Rs) Area of land(in hectares) Kg. Of material or material cost in Rs. Volume of material or fluid Length of material square area of space Units of power Time etc.

IMPROVING PRODUCTIVITY
Output = Input Methods of improving Productivity Increase output while input remains same Decrease input while output remains same Increase input resulting in a very large increase in output Decrease input by a very large amount with a resultant small reduction in output

TYPES OF PRODUCTIVITY MEASURES

Single Factor productivity Multi Factor Productivity Total Factor Productivity

Single Factor Productivity

Productivity of Labour = Output/ no of workers or number of man hours Productivity of Capital = Output/ Capital Employed Productivity of Material = Output/ Material consumed Productivity of Machines = Output/ Machine hours worked Productivity of Land =Output / Area of land used

Multi Factor Productivity

MFP = Output/ Labour+Matrerial+Capital+Power

Total Factor Productivity

Total Productivity Index = Total Output/ Total Input