Productivity

1
 How to Increase Profit
 Increase Sales Volume (Increase Market
share)
 Increase Sale Price
 Reduce Purchase cost of Input
 Reduce cost of production
 Improve quality (Reduce cost of Quality)
 Improve productivity

2
 Example of Productivity
1. By spending Rs 100 I make 100 pieces,
the productivity is 1
2. By spending Rs 200 I make 250 pieces ,
the productivity is 1.25
3. By spending Rs 400 I make 300 pieces,
the productivity is 0.75
So my action 2 gives me higher
productivity although action 3 gives
higher output

3
 Productivity- Definition
(Productivity is a ratio)
The amount of output per unit of input
(labor, equipment, and capital).

• Number of products / No. of hours taken to produce them

• Revenue generated by employee / Salary of employee

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Efficiency and Productivity

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 Efficiency and Productivity
 If a worker is expected to produce 800 pieces in 8 hours
time and he produces 720 pieces , his effy is 90% and
productivity of the machine is 0.9
 If another worker produces 600 pieces in 6 hours, his
effy is 100%
 The machine was under breakdown for 2 hours that is
why the second worker could run the machine for 6
hours only instead of 8 hours
 While the effy of the second worker is 100% the
productivity of the machine is 0.75
 Higher effy does not mean higher productivity

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 Inputs
 Materials
 Tools
 Equipment
 People Abilities
 People Attitude
 Knowledge Level
 Processes
 Systems
 Management

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 How to improve Productivity
 Increasing the output with the same input
 Decreasing the input for the same output
 Increasing the output more than the
increase in input
 Increasing the output with decreasing
input

8
 Human Resource Development
(Employee Productivity)
Identify Training Needs of Employees:
1. Quality Awareness and understanding
2. Quality Principles
3. Quality Measurement
4. Quality Processes
5. Quality Systems
6. Cross Functional Teams
7. Cost of Poor Quality
8. Continuous Improvements
9. Problem solving Tools
10. Statistical Application
11. Breakthrough Improvements

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 Employee Motivation
Maslow’s “ Hierarchy of Needs”

Level 1: Survival
Level 2: Security of job
Level 3: Social Belonging
Level 4: Self Esteem
Level 5: Self Actualization

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Intrinsic and Extrinsic Motivators
 To promote intrinsic motivation, the
environment for work should be conducive
and enjoyable. The work alone may not
motivate but challenges and responsibility
would surely help
 Extrinsic motivators are related primarily
to job benefits, one does the job in
anticipation of a reward.
Such motivators are short lived.

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 Strategic Steps to Improve
Productivity
 Improve processes by R & D or redesign or
new technology
 Improve/provide new plant and equipment
 Simplify product spec and reduce variation
 Improve existing methods and procedures
 Improve the work plan and the use of
manpower by automation
 Increase overall effectiveness of
employees
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 Productivity and Profitability
 Profitability is dependent on Break-even point
 BEP is the point where the sales revenue equals
to expenses
 Hence there is no profit & no loss at BEP
 Every business will try to lower the BEP so that
they can make some profit
 BEP can be lowered by improving productivity
thereby reducing cost
 BEP can not be lowered by increasing price as
the market share is likely to shrink

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 Break-even Analysis
 Everyone in the organization must know the
break-even point (BEP)
 This gives them a clear picture of expenses and
what it takes to run the business
 In a company it is every person’s responsibility
to bring down the break-even point
 Cost reduction of any kind brings down the BEP
 When BEP comes down the profit improves

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 Breakeven Point Diagram

SALES

TC
PROFIT

C
O
S A B
T VC
S FC
LOSS

C
UNITS OF SALES PER PERIOD

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 Elements of Cost
 Fixed cost has elements like plant and
machinery depreciation, managers
remuneration, taxes for plant , common
electricity use etc
 Variable cost is composed of material cost,
component cost, labour cost and electric
power used to manufacture the product

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 Partial & Total Productivity
 Partial productivity is the ratio of output to
one class of inputs while Total Productivity
takes into consideration the sum total of
inputs
 Partial Productivity=output Quantity / one
class of input
 Total Productivity= output Quantity / total
input quantity

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 Measures of Productivity
 Partial Productivity Measure = PPM
 PPM= Gross Domestic Product / total Hours
worked

 Total Productivity Measure = TPM

 TPM = Real Gross Output / Real Gross input
 TPM = Products+Services+value addition /
Labour+Capital+Energy+Materials+Other Inputs

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 Productivity Improvement
 Create a Motivated atmosphere
 Work study, Method study and
Work measurement
 Product and Process improvements
 Automation to avoid manual effort
 Common sense Management Techniques
 Structured techniques like TQM, JIT, Kaizen,
QC etc.
 Incentives and Bonus

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 Business Growth v/s Productivity
 Improvement in productivity results in less
requirement of labour force
 If there is no growth in the business then
retrenchment of labour force is inevitable
 Growth is a natural outcome of improvement in
productivity
 If there is no productivity improvement the
business is likely to close down due to
competition
 So business growth and productivity
improvements take place simultaneously

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 National Productivity Council
(NPC)
 NPC is a national level organization to promote
productivity culture in India
 It is a non-profit organization established by GOI
in 1958
 It has equal participation from GOI, employers
and workers’ organizations
 They provide training , consultancy and
undertaking research in the area of productivity
 It works in conjunction with Asian Productivity
Organization (APO) an inter-Govt body of which
GOI is a founder member

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 Objectives Of NPC
 To promote the cause of Productivity in
Industry, agriculture, services and infrastructure
sectors of economy
 It aims at enhancement of quality of life of
people in general
 It aims at professional approach to provide
world-class services needed by Indian industry
to become internationally competitive in a global
economy
 NPC is also a change agent, aiming to assist
central and state govt in improving the quality
and efficiency of public services

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 Consultancy Services by NPC
 Process Management
 Energy Management
 Environmental Management
 Integrated Human Resource Solutions
 Technology Management
 Agri Business
 Strategic Consultancy
 Information Technology
 Productivity Awareness
 Economic Services

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 KAIZEN
It is a system of continuous improvement in

 quality
 technology

 processes

 company culture

 productivity

 safety

 leadership

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 KAIZEN
 Kaizen is focused on making small
improvements
on a continuous basis and finding creative
solutions
instead of capital expenditures

 KAI………to change or modify

 ZEN……..to improve

 =modify to improve
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 What is Kaizen
 Kaizen is a system in which every
employee is encouraged to come up with
small improvement suggestions in their
area of work on a regular basis
 This is a continuous exercise
 60/70 suggestions per employee per year
are written down, shared and
implemented

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 Process of Kaizen
 Ideas are not for major changes
 Ideas are little changes on a regular basis
always improving productivity, safety and
effectiveness and reducing waste
 To support the higher standards, Kaizen
also involves providing the training,
materials and supervision needed for
employees to achieve higher standards

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 Elements of Kaizen
 Quality Circles
 Improved Morale
 Teamwork
 Personal discipline
 Suggestions for Improvement

 Happy employee is a Productive Employee

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 FIVE “S” Program
 Sort (clean up)
 Systematize (organize)

 Sweep (regular cleaning)

 Standardize (simplify)

 Self Discipline

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 Kaizen Problem Solving Tools
 Pick a project (Pareto Principle)
 Gather data (Histogram and control chart)
 Find cause (Process flow diagram and fish
bone diagram), Brainstorm
 Pick likely causes, seven deadly wastages
 Try solution (PDCA),” plan do check act”
 Implement solution
 Monitor results
 Standardize on new process
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 Kaizen v/s Innovation
 Small improvements  Major improvements
 Fair knowledge  Technology or
equipment
 Personal involvement
 Money investment
 Many people  A few champions

 Improve the process  Improve results

 Even in slow economy  Mainly in good economy

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 Steps to Implement Kaizen
 Discard conventional fixed ideas
 Think how to do it, not why it can’t be done
 Start by questioning current practices
 Do it right way, if you make a mistake, correct it
 Do not spend money for Kaizen, use your
wisdom
 Find root cause of the problem
 Seek wisdom of 10 people
 Kaizen ideas are infinite

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 Benefits of Kaizen
 Involves every employee in making a change
 Focuses on identifying problems at their
source and addresses seven deadly wastages
 Continual small changes add up to major
immediate benefits
 Results: Improved productivity, quality, safety,
faster delivery, lower costs and greater
customer satisfaction

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 Suggestion Scheme
 This is a method of cost reduction and
productivity improvement
 The employees are working in the
organization at different levels
 While on the job they get number of ideas
in their mind to do some improvements
 Every improvement yields some gains
 To garner these gains suggestion scheme
is implemented
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 American v/s Japanese Approach
 Both these countries have immensely
benefited from this technique
 American style tends to buy ideas
depending on how much the company
benefits and give 10% to the suggestor
 Japanese style is to create ideas to make
jobs easier to do and motivate the concept
of group exercise

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 Suggestion Scheme in India
 In India we tend to follow American style
 A form is developed to be filled in by the suggestor
where he has to write present method , proposed
method and expected savings in money terms
 Such forms are collected periodically
 Suggestion committee approves/rejects the proposals
based on implementability
 10-20% of annual savings are paid to the suggestor as
one time award
 It is ensured that suggestor does not give suggestion on
the area where he/she is employed

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Structure of Suggestion scheme
 Scheme co-ordinator
 Suggestion Scheme Committee
 The Suggestion Evaluator
 The Suggestor

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 Principles of Suggestion Scheme
 Give a subject for each month
 Motivate employees to think about that subject,
like energy saving, water saving, Lubricant
saving etc.
 Give details of the subject so that employees
know the current consumption, the purchase
price, best in the industry norms etc.
 Give a token gift for each suggestion
 Announce the annual awards to motivate
employees

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 How to make the Suggestion
Scheme effective?
 Respond to all the suggestions immediately
 Highlight the suggestions publicly
 Award must be given immediately for best
suggestions
 Establish categories for regular awards
 Award presentation should be a big function
 Act upon the suggestions
 Participate in Indian National Suggestion
Schemes’ Association contest

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 Kaizen v/s Suggestion Scheme
 Kaizen/QC are generally a group activity
 Suggestion Scheme is an individual activity
 Kaizen focuses on pain areas
 Suggestion scheme aims at cost reduction
 Kaizen is small continuous improvements
 Suggestion scheme can give big benefits
 Kaizen aims at eliminating pain areas in employees work
 Suggestion scheme aims at cost reduction in any
department of the company
 Kaizen motivates employees and suggestion scheme
focuses on award for cost reduction

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 Incentive Schemes
 The sole objective of the incentive schemes is to increase
the production with or without increase in productivity
 The basis of this system is on the time standards
 The standards are laid down and communicated to all
workmen
 Anyone giving more production than the standard is paid
extra
 This is one of the methods of sharing gains of improvement
in production/productivity
 This is also a part of collective bargaining
 This is a useful tool when the demand for the product is
high

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 Incentive Schemes
 Incentive programs are used to motivate
employees
 Different schemes are designed for
individuals as well as for the groups
 This improves productivity of employees
due to attraction of rewards
 It is necessary that employees and
managers trust and respect each other

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 Advantages of Incentive Scheme
 Employee effort is focused on important
targets which match organizational goal
 Rewards are variable cost linked directly
to results
 Incentives are directly related to improved
performance
 Rewards go to the responsible persons for
higher performance

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 Limitations of Incentive Schemes
 Employees suspect that the standards are set
unfairly on higher side
 Employees feel that they have to work very hard
to get the benefit of rewards
 The schemes create unfair competition among
employees
 Increased earnings result in tougher standards
 Schemes are sometimes complex to understand
 Schemes create friction between employees and
management

44
 Types of Incentive Plans
 Piece Rate Plans
Direct link of increased wages to the increase in
production

 Standard Hour Plans

Incentive is given for saving time, if he finishes
the job in 90 min in place of normal 120 min.
This is common in project type of business

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 Profit Sharing Plans
 Profit sharing plan distributes a portion of the
annual profit to the employees by way of ESOP
(Employee stock ownership plan)
 Typically a percentage of profits is distributed
among the employees
 The company gets loyalty and commitment in
return
 The company does not pay any money but gives
them shares based on their length of service and
pay levels

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 Effects of Incentive Systems
 In the beginning the production goes up but gradually
this system loses the charm
 There are frequent clashes between union and
management
 Unions oppose this system due to the abuses under such
plans and ill effects
 Collective bargaining becomes very complex due to
confusion created by complex incentive schemes
 Employees treat this as a matter of right and
demand extra wages as annual bonus
contd

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 Effects of Incentive System
 Creates friction among workmen
 Tends to affect the quality of product
 Managements feel that the gain through such
schemes is not adequate
 The cost of computation of extra wages for each
worker becomes very high
 Customer discontent due to inferior quality
 Increased frequency of accidents
 Dis-satisfaction among management staff to run
such schemes due to frequent disputes

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 Work Study
 Work study involves investigation of what
employees do, how they do it and how long they
take to do the job assigned to them
 Work study/ Industrial Engineering uncover
inefficiency and task redundancy
 Change the methods and the need for the job
itself may brought into question
 Diplomacy and sensitivity are integral part of
work study/ Industrial Enginnering

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 Method Study
 Work study has two elements:
Method Study ( Actions )
Work Measurement ( Time taken )
 Method Study is the process of subjecting work
to systematic, critical scrutiny in order to make it
more effective and / or more efficient
 Method study was designed for analysis and
improvement of repetitive manual work but now
it is used for all types of activities at all levels

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 Method study
 Defination:
Method Study is a scientific & analytical
procedure for determining a preferable work
method considering
1. Raw Material
2. Design of the product
3. Process or order of work
4. Tools , the workplace and equipment
5. Hand and body movements used in each step

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 Objective of Method Study
 To find economy of money, economy of human
effort, economy of time, material, skill, space,
machine time, tools etc
 Method Study is used for locating deficiency in
any the factors stated above
 Method Study encourages designing a work
method through logical analysis and synthesis
 Improve the work method to get maximum
efficiency

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 Analysis of Work Content
 Reason of work  Category of work
 Basic work content  Unavoidable
 poor product design  A: Work content due to poor
 Material wastage design
 Bad quality
 Poor layout  B: Work content due to
 Inadequate material handling process, equipments and tools
 Inappropriate work method
 Breakdown of machine
 Late coming/absenteeism
 C: Work content due to
operator
 Poor workmanship
 accidents

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 Analysis of work content
 General study indicates that the basic work
content is about 30% of total work and this can
not be reduced
 A category is generally 50 to 54 %
 B category is about 18 to 20 %
 C category is 12 to 15 %
 Method study has the scope to reduce or
eliminate all three types of work content A , B
&C
 Type C is a bit sensitive and can be minimized
 However type A and B should be eliminated

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 Technique to Conduct Method
Study
 Select the task to study
 Record the facts about it
 Examine these critically
 Eliminate / reduce A B & C categories
 Develop a new efficient method
 Install / implement the new method
 Maintain the new method

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 Selection of Task
 Decide aim of Study
 Determine the objective in terms of area of the
job to be changed
 Establish better solution for doing the job
 Concentrate hand and body movements
 Study the process and work sequence
 Study product design
 Study input Raw Material
 Study layout , tools and equipment

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 Record the Facts
 Record all facts and use charts and
diagrams
 Collect and collate the data
 Analyze and arrive at a conclusion
 Get more data to verify the conclusions
 Try out the conclusions

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 Examine the data
 The recorded data are subjected to
examination and analysis
 Normal methods of this process are critical
examination and system analysis
 The aim is to identify questioning process
which will decide the improvements or
beneficial change

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 Develop a new method
 Thorough analysis automatically leads to
identified areas of change
 The aim is to identify possible actions for
improvement and develop a preferred solution
 Identify short term and long term solutions to
get the benefits
 The success of method study project is realized
when actual change is implemented
 The change should meet the initial objective at
the time of selection of the project

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 Install
 Making a real change demands careful planning
and handling of the people involved in the
solution
 They may need reassuring, retraining and
supporting through the acquisition of new skills
 Installing new method may require a parallel
running of old and new systems
 Sometimes there is only one chance to make a
change
 It is essential to document the changes

60
 Maintain

 It is necessary to check that the new method is

working as per expectations
 Also it is giving desired benefits
 It is common that people slowly shift to old
methods
 Initiate Method audit to observe irregularities
 Industrial Engineers must monitor that the
changes are followed in totality
 The changes have to be stabilized quickly

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 Ergonomics
 Greek words ‘Ergo’ means work and ‘nomoi’ means
natural laws
 This is the application of knowledge about human
capabilities and limitations to the design of workplaces,
equipment, tools, work methods, products and
organizational structures
 Ergonomics is based on the concept that workplace
injuries and illnesses can be caused by the very tools
and equipment used in the job processes
 The purpose of ergonomics is to promote physical
comfort, productivity and efficiency
 This will result in reduction in the risk of physical injury,
stress and fatigue

62
 Principles of Ergonomics
 While working all activities should permit
the worker to have several different
healthy and safe postures
 Largest appropriate muscle groups should
exert maximum where muscular exertion
has to take place
 Work activities should be performed with
the joints at about midpoint of their range
of movement

63
 Factors affecting a worker
 Force used by man causes exertion
 Repetition of action again and again
 Awkward posture of unnatural style
 Overexertion due to excessive strength
 Repeated exposure to work condition
 Temperature, ventilation and humidity
 Noise level at workstation
 Poor lighting or seeing continuously
 Posture of man at work giving rise to muscular
pain, backache, neck ache, leg cramps etc

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 Computer related problems
 Workstation design
 Keyboard working height
 Wrist rest
 Monitors
 Chair design and adjustment procedure

65
 Manual material handling
 Lifting , pushing, pulling, carrying, holding
 Heavy work
 Static work postures, especially sitting
 Bending twisting
 Repetitive work
 Vibration
 Sudden, unexpected movement

66
 Work Measurement
 Work study has two elements:
Method Study ( Actions )
Work Measurement ( Time taken )
 Method Study is the process of subjecting work
to systematic, critical scrutiny in order to make it
more effective and / or more efficient
 Method study was designed for analysis and
improvement of repetitive manual work but now
it is used for all types of activities at all levels

67
 Work Measurement
 Work Measurement has another name which is called
“Time Study”
 It is an appraisal in terms of value of work involving
human effort
 It produces time standard for the performance of a
series of acts by man or group of men
 The standard is carefully defined so that consistent &
reliable measurements are made
 Normally the standard time is 30% higher than most
efficient worker is likely to take under given conditions
 This 30% is called an allowance for an average worker
who is not expected to be most efficient day after day

68
 Objectives of Work Measurement
 To set schedules
 To set labour standards for evaluating the
performance of workmen
 To determine number of machines that a person
may run
 To balance the work of crew of production line
 To determine the standard cost
 To determine equipment and labour requirement
 To determine basis of incentive wages

69
 Method of measurement
 Decide the task to be measured
 Identify and note down all the elements of
each task and see if there are any
unwanted elements
 Observe the task being done and ensure
that reliable observations are noted
 Record the time taken by stopwatch on
the time sheet, this is called
“Observed Time” for each element
70
 Standard Time
 Standard Time = Basic time + Allowances
 Allowances are given for sitting standing
crouching stretching temperature humidity etc

 Basic Time = Observed time + Rating

 Allowances vary from industry to industry

 Generally a personal allowance is 5%
 Fatigue allowance may vary between 10-20%
 Relaxation allowance & performance allowance
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Benefits of Work Measurement
 Improvements of methods
 Contract estimation
 Estimate employee cost for a project
 Facility Planning
 Scheduling and balancing gap-capacity
 Manpower planning
 Accurate Incentive payments structure

72
Problems in Work Measurement
 Accuracy of measurement is always doubted by labour
 Employees are very sensitive to data inaccuracy when
their incentive pay is calculated
 Unless method study is done time study should not be
conducted
 All elements of work including wasteful work elements
should be listed on paper
 Before the study is started it should be communicated to
all concerned with purpose and method of study
 The Industrial Engineer has to be objective, fair,
diplomatic and discrete in communicating project
outcomes

73
 Calculation of Standard Time
Element Basic Time Relaxation Performance Standard
allowance allowance Time

1 4 10% 110% 4.840

2 6 5% 110% 6.930
3 3.5 5% 110% 4.043
4 3.2 5% 110% 3.696
5 5.5 5% 110% 6.353
6 3.6 15% 110% 4.554
Total Standard Time 30.415

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 Standard production
 If the worker is expected to work for 7.5 hours
and the standard time for one piece id 30
minutes then in 7.5 hours*60=450 min he is
expected to produce 15 pieces
 If he produces 12 pieces his efficiency is 80%
 If his machine had one hour breakdown or
power shutdown then his expected out put is 13
pieces and his effy is 12/13*100 and machine
productivity is 12/15=0.8

75
 Productivity
 Efficiency = output / input
 Productivity = output / input
 If a worker has produced 80 pcs in one hour and
the standard production is 100 pieces per hour
his effy is 80%
 If a worker is expected to produce 750 pieces in
7.5 hours and he produced 500 pieces and his
machine was under breakdown for 2.5 hours his
effy is 100% and productivity of the machine is
500/750 = 0.667

76
 Productivity
 Two steel plants having identical
equipment with a capacity of
3000 mt/month
 One produces 3000 mt with 300 people
and second produces 3000 mt with 250
people
 The productivity for the first one is
10 mt/man and it is 12 mt/man for the
second one

77
 Productivity
 Two steel plants having identical
equipment with a capacity of
3000 mt/month
 One produces 3000 mt with 300 people
and second one produces 2400 mt with
300 people
 Productivity of first is 10 mt per man and
for the second it is 8 mt per man

78
 Job Evaluation
 Job Analysis means activities involved in the job which
include duties, responsibilities and accountability
 Job Evaluation is used for proper wage structure, each
job is to be evaluated based on importance and
responsibility and then group the jobs for a particular
wage structure
 It is essential to do comparison to evaluate worth of
each job with respect to other
 Generally job evaluation is done along with union in the
organization
 Job evaluation is done to decide the levels or grades
 Normally the grades are fixed based on skill,
responsibility, effort and working conditions

79
 Job Rotation
 Job Rotation involves moving employees
to various positions in an organization with
an effort to enhance their skills,
knowledge and abilities
 The horizontal movement is generally
known as job rotation whereas the vertical
movement is called a promotion with or
without job rotation

80
 Advantages of Job Rotation
 It is an excellent method for broadening
individual’s exposure to company’s operations
and for turning specialist into a generalist
 It reduces boredom and stimulate development
of new ideas
 It can also provide opportunities for a more
comprehensive and reliable evaluation of the
employee over a period of time
 It is used to develop leadership qualities among
the bright employees who can become the
future leaders

81
 Brain Storming
 Brainstorming is a group activity
 The objective is to take benefit of synergy by involving
all participants and obtain the benefit of collective
thinking through a brainstorming session
 The rules of brainstorming are as under:
1. A facilitator will lead the group
2. The ideal group size is 5 to 12
3. All participants must be aware of the topic
4. All ideas generated to be noted down on board
5. The entire group must participate in the process
6. Look at all ideas for their value

82
 Brainstorming
7. In case the idea is not accepted by the
management, the same should be
communicated to all members
8. If the idea is accepted, the entire group should
get the full credit
9. A facilitator must keep the atmosphere relaxed
and freewheeling
10. Encourage everyone to contribute
11. Focus on quantity and not on quality of ideas
12. Judgment should not be passed during idea
generation phase

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 Benchmarking
 Benchmarking is a systematic method by which
organizations can measure themselves against
the best industry practices
 It is defined as measuring our performance
against the best-of-class companies, determining
how they achieve those performance levels and
using that information as a basis for our own
company’s targets, strategies and processes of
implementation

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 Benchmarking
 Zerox corp USA introduced benchmarking in
1980’s when their global market share shrank to
35% in 1981
 Having invented photocopying machines in 1959
the company had virtual monopoly till 1970’s
 Zerox became synonymous with photo copying
 With TQM approach with benchmarking as a
quality tool, Zerox could regain its market
leadership by mid 1980’s
 Motorola successsfully practiced internal
benchmarking resulting in ten fold improvement
in ten years
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 Benchmarking
 The 4 levels of Benchmarking are:
1. Internal benchmarking
2. Competitive benchmarking
3. Non-competitive benchmarking
4. World class Benchmarking
 The systematic management approach
for Benchmarking has 4 phases:
Planning, Analysis, Integration and Action

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 Taguchi’s Quality Engineering
 Dr Taguchi emphasized engineering
approach to Quality, thereby producing
the product with target goals or
requirements with minimal variations
 He termed the word variation as noise
 His objective was to minimize the noise
through on-line and off-line quality
activities

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 Taguchi’s Quality Engineering
 Taguchi targets on design for Quality by defining
three designed levels:
 System Design: ( Primary) Functional design
focused on pertinent technology
 Parameter design: ( Secondary) a means of
reducing cost and improving performance
 Tolerance design: ( Tertiary) a means of reducing
variation by controlling causes, but at an increased
cost
 Describe strategic ways of improving productivity

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 Question Bank 1
 What is productivity and describe various
ways of improving productivity
 What are the objectives and benefits of
productivity
 How are the profits related to productivity,
describe various ways of improving
productivity
 Describe strategic ways of improving
productivity
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 Question Bank 2
 What is a breakeven point, draw the
diagram and show all captions clearly
 What are fixed costs and variable costs,
what steps are taken to lower the
breakeven point
 Describe the relation between business
growth & productivity
 What is NPC and what are their objectives

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 Question Bank 3
 Differentiate: kaizen v/s innovation
 Differentiate: kaizen v/s suggestion scheme
 Describe the Steps to implement kaizen
 How to make suggestion scheme effective
 What is Incentive scheme, describe
objectives, benefits and limitations
 Describe work study- method study and
work measurement
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 Question bank 4
 Describe the method by which we can calculate
standard production
 Short notes:

1. Job Evaluation

2. Job rotation

3. Brainstorming

4. Benchmarking

5. Taguchi’s quality engineering

6. Ergonomics

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