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productivity

inition ---- n g n ral s ns
productivity is som r lationship b tw n
input and output o
an nt rpris . t is th
quantitativ r lationship b tw n what w
produc d and th r sourc s us d.
ontd.
 croductivity is th m asur o
how much
input is r quir d to produc d a giv n output
. . it is ratio o
output to input.
 According to c t r ruck r , ³productivity
m ans balanc b tw n all
actors o

production that will giv th maximum


output with th small st

orts.´
contd.-
 According to  , ³th ratio b tw n th
volum o
output as m asur d by th
production indic s and th corr sponding
volum o
labor input as m asur d by
mploym nt indic s.
 rganization o
Europ an Economic
community (EE d
in s productivity as
th ratio b tw n th production o
giv n
contd.-
commodity m asur d by volum and on or
mor o
th corr sponding input
actor also
m asur d by volum . hus th r can b a
numb r o
m asur s indicating th l v l o

p r
ormanc corr sponding to ach input.
M asur o
output
c 


M asur o
input
ontd.-
n most o
th cas s output will b good and
s rvic s produc d,
or which input will b
m n , mon y, quipm nt, pow r, plant

aciliti s, and oth r it ms us d in th
proc ss o
production. otal productivity o


irm can b d
in d as :-
Q
c = ņņņņņņņ
++ +M
ontd.
Wh r -
c = otal productivity
= abour input
= aw mat rial and purchas d parts inputs.
M = th r misc llan ous goods and s rvic s input
actor.
Q = otal outputs.
mportanc o
productivity
h conc pt o
productivity is o
gr at signi
icanc

or und v lop d and d v loping countri s. n
both th cas s th r ar limit d r sourc s that
should b us d to g t th maximum output . h
aim should b optimum us o
r sourc s so as to
provid maximum satis
action within minimum

ort and xp nditur .productivity analysis and


m asur s indicat th stag s and situation wh r
improv m nt in th working o
input is possibl
to incr as th output.
àtrat gi s o
incr asing productivity

 ong t rm
1. mprov basic proc ss by r s arch and d v lopm nt.
2. mprov th xisting production lin by providing b tt r
plant, quipm nt, and building.
Not - n th long t rm it will r quir capital.
 nt rm diat stag .
1. mprov and simpli
y th product, r duc th v riti s
and standardiz th rang .
Not - int rm diat stag may r quir capital.
ontd.-
 àhort t rm.
1. mprov m thod o
op rating and xisting
mat rial r sourc s.
2. mprov th planning o
work and th us o
man
pow r.
3. ncr as th

ctiv n ss o
all mploy s.
Not -t r quir littl or no capital inv stm nt.
h actual signi
icanc and th ord r o
importanc
o
th s strat gi s will vary according to th
individual situation o
ach organization.
actor a

cting productivity
h
actor which a

ct th productivity ar
classi
i d into two cat gori s-
at gory ± .
a crimary
actor ar

ort and working


capacity o
an individual.
b rganizational
actor ar r lat d to th d sign
and trans
ormation proc ss r quir d to
produc d som it ms, and natur o
th ans
training oth r skill impart d to work r to
ontd.
p r
orm c rtain op ration in a production
proc ss control and various oth r
inc ntiv s.
c conv ntion and traditions o
th
organization .g. activiti s o
labor unions
m dicals
aciliti s, work rs and x cutiv s
und rstanding tc.
ontd.
 at gory- 
A. actor r lat d to output.
. s arch and d v lopm nt t chniqu s.
. mprov m nt in t chnology.
. àal s strat gi s o
th organization.
B. E

ici nt us o
input r sourc s, b tt r
stor control, production control policy,
will minimiz th cost o
prod.
ontd.
 h
actor list d in th cat gory   ar

urth r divid d into
our major class s.
1.  chnological
actors- tool raw mat rial
us d.
2. Manag rial
actors- organizational structur ,
sch duling o
work, work nvironm nt,
innovations, mat rial manag m nt tc.
ontd.
3. abor
actor- skills o
work rs, h alth,
attitud toward manag m nt, training and
disciplin tc.
4. Ext rnal
actor- pow r and transport

aciliti s , tari

and tax s tc.


 som o
th
actor ar controllabl and
som ar un controllabl .
 chniqu to improv
productivity
 productivity can b improv d by improving
th p r
ormanc o
various
actor a

cting
productivity . chniqu ar ±
i. B tt r planning and training o
mploy s,
improv d jobs and communication and

ctiv manag m nt through cM/


cE  m thods.
ontd.
ii. Us o
tim and motion studi s to study
improv work p r
ormanc .
iii. B tt r transportation mat rial handling
syst m.
iv. By providing work inc ntiv s oth r
b n
its to th work rs.
v. Work rs involv m nt in d cision making
working o
organization.
ontd.

vi. mprov m nt in t chnology o


production
proc ss natur and quantity o
raw
mat rial us d .
ii Us o
lin ar programming and oth r
quantitativ t chniqu
or b tt r d cision
making.
viii. AB analysis to id nti
y mor important
it ms th n apply inv ntory control to
r duc d capital inv stm nt.
Q0O

croductivity input-output
analysis
nput-output analysis is th m thod to study
th int rd p nd nc o
input output

actors. t shows quilibrium b tw n input-
output. 
µ d not s th
inal d mand o

industry and µA is th matrix o


input, th n
th output
or ach industry shown with th
Q1 ( -A1 c
r lation :- ____________
Q0 ( ± A0 c0
ontd.
 Wh r
c0 Q0 =alu o
output in bas y ar
Q 1 c =alu o
output in curr nt y ar bas
on th bas d y ar pric s.
( ± A1 =  chnology matrix in curr nt y ar
( ± A0 =  chnology matrix in bas y ar.
Y