Productivity In economics, Productivity is the ratio of what is produced to what is required to produce. Productivity is the measure on Production efficiency.Productivity Model + Economic growth is input dependent. + Productivity increase is the production function. OUTPUT VOLUME Growth caused by productivity increase Growth caused by Increase of Input volume INPUT VOLUMEIncreased Volume Improved Services Reduced Costs Able to reach wider Better delivery, better quality. Lower unit cost market better output. ‘More profit or Better benefts to customer more sales. | Materials People Systems Quality, quantity of Correct skill tevets Procedures to ensure ieout meceriaie soe mie Srgeniation cam undestalee ‘SSrwerston peocaoe atmcteraly Tools i — Management | wok atticenly Hiteira pened Stat, abiity and leadership style. | fight calibre and competence. Equipment | Gproaaeana Processes tecamotoay | purpose employed. the systernsuned | stain Trained and developed Actitudes forthe purpose, ‘Ability to adapt, cooperate, change. Resourcefulness and motivation.Productivity Improvement How to realize Improvements: Achieving more output for the same input Achieving the same output from less input Achieving much more output for slightly more input Getting slightly less output for much less input How to improve the productivity ratio of an organization, Improve basic process by research and development (long term) Improve and provide new plant, equipment, and machinery (long term) Simplify product and reduce variety (medium term) Improve existing methods and procedures (short term) Improve the planning of work and the use of manpower (short term) Increase the overall effectiveness of employees (short term)Productivity Improvement + Productivity Studies — Analysis of technical processes and engineering relationship. — Related to concept of Efficiency. * Increase in Productivity — Automation and computerization — Ergonomic design and worker comfort. * Labor Productivity — Average output per worker or per worker-hour — Not the Marginal product of Labor (by increasing no. of workers)Approach Accept existing job cycle times. Domothing. work them ‘harder‘and longer fg. overtime, | aid and unpaid.) De nothing to change status quo. =} ‘Approach 2: not accept existing job:cycle times, Consult far and wide, examine, question and took ether ways to reduce work content. Do every and anything to make things quicker, imple easier rewarding, safer and fun. Doll within power to change status quo, {Eliminated Time (15 minutes ~ 5096) Working smarter ‘What vould ibe the affect of Method Improvement redtucing 9 jab eycie imeby Unnecessary Work Eliminated ‘Yer in your operation?| Labor Utilization ‘Can you define and quantify your work as In the above schematic? Do you know your true labor utilization? Do you know your machine utilization or materials purchased utilization? ‘Spend a handful of hours over a week and you can have these accurately to hand. ‘Once you have them, you can expect to: + Improve yourplanning + Improve the coordination of your resources + Improve yourcontrol and probably + generate afew good ideas for improvement ‘The mere act of studying and recording mex el suggest many short term, irenpensise iygsovements in pronkuctiety fecuctin in wast content