Professional Documents
Culture Documents
Production
Productivity
Capacity
Capacity Utilization / Capacity Gap
Efficiency
Production
Production is any process or procedure developed to transform a set of input
elements like men, materials, capital, information and energy into a specific
set of output elements like finished products and services in proper quantity
and quality, thus achieving the objective of an enterprise.
Materials
Energy
Production
Inputs Outputs
Process
For example, the yield of 15 bags of paddy in one acre of land with
some labor and capital is known as production. By improved method
of cultivation but with same labor and capital, the production of say
20-30 bags of paddy is productivity improvement.
Productivity
Plant A Plant B
No. of Workers 200 300
No. of items produced per unit of 10 20
time
Productivity 10/200 20/300
0.05 0.067
Productivity
Productivity
Productivity
Purpose to Increase Productivity
To produce good earnings(profit)
To clear the debts and loans acquired from
For Management different sources
To sell more
To stand better in the market
Higher wages
Better working conditions
For Workers
Higher standard of living
Job security and satisfaction
Reduced price of the articles
For Customers Better quality and value
More Satisfaction to customers
Provides Greater National Wealth
Increases per capita income
Improves Standard of Living
For Nation Better utilization of resources of the nation
Helps in expansion of International Market with
the help of standardization and good quality
product
Productivity and Standard of Living
Each man must earn to pay for the services (hygiene, security and education)
and to obtain goods (food, shelter and clothing) for himself and his family.
If the quantity of goods and services produced by any country is higher, the
standard of living of the citizens of that country is also higher.
Total productivity is the ratio of total Output to the sum of all Input factors.
A total productivity measure reflects the joint impact of all the inputs in
producing the output.
Total productivity measure doesn’t tell the management which of its
products or services is causing a decline or growth, nor does it which
particular inputs- workers, material, capital, energy or other expenses-
are being utilized inefficiently.
In simple words- Data analysis is relatively difficult.
Partial Productivity
The factors- Excess work content and Ineffective time do reduce the
efficiency or can be said as non productive factors.
Basic Work Content is the main component of the task for which
resources are utilized.
ME+EM+ME+EM=HP+EQC
Modern High
Motivated
Equipments Productivity
Employees
Enlightened
Management
Effective
Engineered
Quality Control
Methods
Capacity
Productivity formula:
Efficiency Formula: