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Concept of Productivity PDF
Concept of Productivity PDF
MODES OF CALCULATING
PRODUCTIVITY
INTRODUCTION
The ratio between “Output of Work” and “Input of resources”
used in the process of creating wealth. – ILO
Productivity = Output (within a defined time and good quality)
Input
Input Output
Process
Waste
(Muda)
Land – Hectares
Material - Metric ton
Plant and Machinery – machine hours
People – Man Hours
Capital – Rupees
Eg: a worker producing 100 pieces is now able to produce 130 pieces
after undergoing a training session. Productivity of worker has
increased by 30%
FACTORS AFFECTING PRODUCTIVITY
Controllable or internal factors
Product – extent to which it meets requirements
Plant and equipment – availability and reduction of idle time
Technology – automation
Material and energy – reduce material and energy consumption
Human factors – motivation and training
Work methods – improvement in the way of doing things
Management style – communication, policy and proceedure
Productivity Performance
Eg:
It takes 3mts. Of cloth to make a coat. In a day Prashant is
expected to make 50 coats. He makes 40 coats from 111mts. of
cloth
Performance Index is = 80%
Prashant’s productivity is = 108%
Cloth Productivity = 0.36 coats/mt.
Performance Index = 40/50 * 100 = 80%
Prashant’s productivity = 120/111*100 =108%