Productivity and its concepts.

Introduction, concept-definitions, Factors affecting productivity, ways to increase productivity, Measurement of Productivity.

Concept of Productivity.

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Productivity is relationship between input and output of an enterprise. It is a quantitative relationship. The only way to raise the standard of living is to increase productivity. Productivity can be increased by increasing output from each unit of input.

Productivity

In today’s cut-throat competitive world, business houses wants their future plans & policies to be the best The best plans comes from past performance and records. The indicators of past performance are productivity, profitability, rate of return, market share etc.

Definitions of Productivity.

Productivity is measure of how much input is required to produce a given output. Productivity is ratio between the amount produced & amount of resources used in course of production Productivity means balance between all factors of production that will give maximum output with

In general sense productivity is measure how much input is required to produce a given output. Productivity = Measure of Output Measure of Input. In most cases output is goods and services. The inputs are in form of Men, Machine, Money, Power, Facilities etc

CALCULATION OF PRODUCTIVITY

Productivity can be measured by the formula:PT = QT _ L+C+R+M

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PT = Total Productivity L = Labour Input. C = Capital Input. R= Raw Material Input.

M = Miscellaneous QT = Total Output.

Factors affecting Productivity.
Factors affecting Productivity

Category I

Category II

Primary

Organizational Output Factors Efficient use of input

Conventions and traditions

Factors affecting productivity
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CATEGORY- I Primary:- The efforts and working capacity of an individual. Organizational:- related to design and transformation process. The training and skill imparted to the workers for operating prod. process. Conventions & Traditions:- Activities of labor unions, medical facilities, workers and management understanding.

Factors affecting productivity
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CATEGORY- II Output factors:- The research and development techniques, efficient sales strategy and improvement in technology. Use of Input:- Efficient use of input resources (LIMCA T), better stores control, production control policy, maintenance of Machines, are useful to minimize the cost.

Factors affecting productivity

The factors can be further divided in 4 major classes. Technological Managerial Labor External

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Factors affecting productivity
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Technological It can increase the output per unit of input substantially. Technology employed, Materials and tools used. Managerial Organizational structure, scheduling of work, Financial management, company policies, work environment and material management.

Factors affecting productivity
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Labor Skill of labor force, health, attitude towards management, training and discipline. External They are innumerable. For ex. Transport facilities, taxes and tariffs, power facilities etc. they are incontrollable.

Ways to increase productivity
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It can be improved by no. of ways. Ex. Elimination of wastes, use improved tech, reduce maintenance time, use better RM, Improved utilization of resources, reduction in working capital, reduction in inventory, improved Skills of manpower, etc.

Ways to increase productivity
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Use time and motion studies to improve performance. Better transportation and material handling Motivate employees by giving benefit Workers involvement in decision making. Better planning and training to employees Improvement in technology and RM.

Ways to increase productivity
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Simplification, standardization and specialization technique. Better and efficient use of resources. ABC analysis and such other inventory control techniques to reduce capital invst Use of linear programming, CPM and PERT for better decision making of production technique.