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Productivity-Awareness, Analysis,

Measurement & Improvement Techniques



 Introduction to productivity concepts and classification.
 Causes of low productivity
 Factors affecting productivity
 Productivity analysis
 Ways to improve productivity
 Productivity improvements circles.
 Productivity improvements techniques.
 Understanding productivity in the new global context.
 Improving organizational HR productivity
 Productivity improvement steps:
 Your organization’s action plan.
General Definition
•Productivity is the relationship between the
OUTPUT generated by a production or service
system and the INPUT provided to create this

•Higher Productivity means accomplishing more

with the same amount of RESOURCES or
achieving high output in terms of value and quality
for the same input.

 In the context of time, PRODUCTIVITY can
also be defined as the relationship between
RESULTS and the TIME it takes to
accomplish them.

 Regardless of the type of production

economic or practical system, Productivity
can be defined as the RELATIONSHIP
between quality and quantity of goods and
services PRODUCED and the quantity of
RESOURCES used to produce them.
 Productivity is not only labor productivity.
It is efficiency of all utilized resources.
 It is possible to judge performance only
by output-the labor may be rising without
any increase in productivity.
 Confusion between productivity &
profitability-High recovery goods
produced not necessary in demand.
 Confusing productivity with efficiency
producing high quality goods in shortest
time-whether needed.

 Cost cutting outlays always improve

productivity-when done indiscriminately can
only work in long term.

 Productivity can only be applied to

The main indicator of improving productivity or
decreasing ratio of input to output at constant
or improved quality.

For Individual Worker

Is the relationship of the value of specific work
done to the potential capacity of the worker
(in numerical, over time hour)
For the Enterprise
Is the relationship between Value added and
Cost of all input components.

At National Level
Is the relationship of national income to total
Identify Causes of Low Productivity
of your Organization.
A. Total Productivity

B. Partial Productivity
○ Bought Out Item
○ Raw Material
○ Labor
○ Salary and Wages
○ Selling & Administration
○ Depreciation
○ Work Services
Productivity; Effective Utilization of Resources
Mathematically :
Productivity = Output/Input
Total Productivity=V.A/Conversion Cost
Total Productivity= Sales – (Rm+B+W+D)____
L + Sc + Rm + B+ D+ W+ Sc
While Partial Productivity= V.A / Partial Input
If Raw Material Productivity is Required
Partial Productivity(Rm) =V.A / Raw Material Cost
V.A = Value Added
VE :Manufacturing methods decided
during the design stage.

VA :Technique for analyzing whether

waste is present in design
measures such as dimensions, shapes,
accuracy and materials as seen
from the functional side of the
manufacturing method.
 Rent , Rates and Taxes
 Insurance
 Fuel and Power
 Repairs and Maintenance
 Travelling and Entertainment
 Technical Assistance
 Lease Rentals
 Research and Development
 Other Expenses
Productivity Analysis of Your
Technological Advancement: 40% of al US
productivity improvement is attributed to this.

Productivity System and Initiatives: Existence of

clear objectives for enhancing quality, teamwork,
worker involvement and efficiency for profitability,
general to help organization become efficient
“producer” of a product and services giving it a
competitive advantage in terms of value for money.

Improved Performance Management: Developing

peoples ability to do their jobs better. Training and
development at all level of organizational hierarchy.
the organization should not be ignored.


making them part of the solution rather than part of the

 SUPERVISORS development program.

 DEVELOP PATIENCE of tangible results which may

take six months to a year. Program with short to be
followed up with one whose results will appear later.
 TEAM BUILDING participation should not be restricted
to individual work group. Facilitate corn fertilisation of ideas
and promote understanding of how department and
individuals create problems for each others.


organization should be at once comprehensive, simple and
understood by all.

 EMPLOYEE INVESTMENT is not by itself the key to

success, if the organization has not prepared itself to
receive their idea and then act on them.

 PERFORMANCE INDICATORS to be developed. It

may be easier to improve to productivity then to measure it.
not just sufficient for success without proper training for the
individual to be responsible for implementation, without
assistance from an organization experienced in the system
and without any professionally designed aids and materials.

 DEVELOPMENT OF INDIVIDUAL cannot be separated

from productivity improvement efforts. People need support
and assistance in getting started.


makes in one country or one organization may not be
necessarily succeed in another country or organization.
Each strategy or new idea for productivity should be
examined on its own merits and success probability in the
culture where it will be used.
1. Cleaning
2. Cleanliness
3. Arrangement
4. Proper Order
5. Discipline
6. custom
Ensure the customer’s trust including the
next process.

Serve Society

Respect and be kind to people.
1. Over Production
2. Waiting for Work and Materials
3. Transportations
4. Unnecessary Operations
5. Unnecessary Inventories
6. Unnecessary Motions
7. Producing Defects
1. Demonstrate Commitment
2. Develop a Strong Foundation
3. Develop a Useful Environment
4. Develop a Useful Structure
5. Develop Individual Levels
6. Develop a Product.
1. Decide what to Rule
2. Make a Rule
3. Teach a Rule
4. Observe a Rule
5. Follow a Rule
6. Change a Rule
1. 6S
2. 6R
3. Attendance
4. Suggestions for “KAIZEN”
5. Efficiency
6. Outputs
7. Defect Ratio
8. Defect Map
9. Cross Reference Map
10. Zero Claim
11. Profit & Loss per Production Line
 Is a group of 3-10 workers from the
same workshop organized and
maintained to participate in self and
mutual development and problem
solving activities in order to increase
company productivity.
 Membership is Voluntary
 Circle is small in Size
 Membership is Homogenous
 Specific Tasks and Objectives
 Systematic and Scientific Approach
 Continuing In Nature
 Universal in Application
 To Contribute to the Stability and Growth of

 To make the workplace a better place to work in.

 To develop the human Potential to the Fullest

 Productivity Improved
 Morale Improved
 Self Esteem
 Problem Solving Skills Developed

 Job Made Easier

 Role Clarified
 Leadership Skills Developed
 Quality Standards Improved
 Production Outputs Increased
 Cost Reduced
 Relationship with Labor Improved
 Institutional Will
 Full Support of Top Management
 Effective Program Communication
 Participation at All Levels
 Continuous Capability Building
 Organizational Base
 Monitoring and Feedback
 Program Innovation
a) Employees Based Techniques
b) Task Based Techniques
c) Technology Based Techniques
d) Quality/ Material Based Techniques
e) Product Based Techniques
f) Performance Indicators
 Financial Incentives (Individual)
 Financial Incentives (Group)
 Fringe Benefits
 Employee Promotion
 Job Enrichment
 Job Enlargement
 Worker Participation
 Skill Enhancement
 Management by Objectives
 Learning Curve
 Communication
 Improvement of Working Conditions
 Training
 Education
 Role Participation
 Quality of Supervision
 Recognition
 Punishment
 Quality Circle
 PQ Teams
 Zero Defects
 Time Management
 Flextime
 Compressed Work Week
 Harmonization
 Methods Engineering
 Work Measurement
 Job Design
 Job Evaluation
 Job Safety Design
 Production Scheduling
 Human Factor Engineering
 Computer Aided Design (CAD)
 Computer- Aided Manufacturing (CAM)
 Computer Integrated Manufacturing (CIM)
 Robotics
 Laser Technology
 Energy Technology
 Group Technology
 Computer Graphics
 Maintenance Management
 Rebuilding Old Machinery
 Energy Conservation Techniques
 Inventory Control
 Material requirement Planning
 Material Management
 Quality Control
 Material Handling Systems Improvement
 Material Reuse and Recycling
 Value Analysis
 Product Diversification
 Product Simplification
 Product Standardization
 Research and Development
 Reliability Improvement
 Emulation
 Advertising and Promotion
 Productivity = People ½ + Wages 2 + Performance 3

 Wealth = Productivity + Alchemy

 Happiness = Wealth + Humanity

 The magic numbers

 How result oriented is your HR

 HR as Catalyst of Change

 HR as Leaders in Human Productivity

 An HR manager’s profile.