Productivity

Productivity
Purpose to increase productivity
Productivity is analogous to efficiency of a • For management
machine
-Good earning
Productivity=Output/Input -To clear debts/loans acquired
-To sell more
Output: amount produced, no. of items produced -Stand better in the market
Input: land, building, equipment, machine, • For workers
material, labour
-Higher wages
Calculation of productivity -Better working conditions
-High standard of living
Plant A Plant B
-Job security
No. of workers 200 300
• For customers
No. of items produced per unit time 10 20
Productivity 10/200= 1/20 20/300= 1/15
- Reduced price of article
Factors affecting productivity
• National productivity
- Human resources: General level of education, Motivation, safe conditions, unions should
help production
- Technology and Capital investment: New tech dependent R&D, encourage investment
- Government regulations: Unneeded rules should go/cost benefit analysis

• Productivity of Manufacturing and services

- Product and system design- simplify the design, eliminate some parts, standardisation
- Machinery and equipment: layout of factory, quality of equip., CAD/CNC
- Skill and effectiveness of workers- training of workers (experience is good)
- Production volume- increase low level employee, but same high level employees can do the
job, so the productivity of high level employees improves.
Increasing productivity of resources
• More output from same resources
1. Material: to improve productivity
-Change in design of component or component
layout may save material
- Save material wastage by choosing correct
process, trained workers, material handling and
storage and packaging (reduce scrape rate)
- Use of alternate cheap material
Material productivity = Output/material input
(Expenditure)
2. Labour: to improve productivity
- A change in design may ease the assembly
procedure ( more assemblies)
- Provide training for best methods
- Motivation of workers
- Ease of process (process design)
- Improved working conditions
- Labour productivity = output/ expenditure on
Labour
 Increasing productivity contd..
3- Plant equipment and machinery
- Improved cutting tools
- Simple attachments
- improved machine setting methods
- Proper utilization
- Skilled operator
- Preventive maintenance (inc. MTBF)
Machine productivity = Output/Machine hours
Energy productivity = Output/Energy input
4- Capital
- Careful make and buy decision
- Better utilization of land and building
- A suitable plant layout accommodates more
machines
Capital productivity = Output/Capital input
General productivity: Output/(Mat. input+ Labour input+
Capital input+ Energy input+ Other inputs)