PRODUCTIVITY

Reporters:
April Beatrice Malonzo
Michaela Pangilinan
PRODUCTIVITY
Introduction
 Productivity is the output of any production process,
per unit of input.
 To increase productivity means to produce more with
less.
 In factories and corporates, productivity is a measure
of ability to create goods and services from the given
amount of human resource, capital, land, knowledge,
time or any combination of these above.
PRODUCTIVITY
Definition
 According to International Labor Organization (ILO):
“The ratio between the volumes of output is measure by
production indices and the corresponding volumes of labor
input is measured by the employment indices. The productivity
is a measure of how much input is required to achieve a given
output.”

OUTPUT
PRODUCTIVITY =
INPUT
PRODUCTIVITY
Example
 In Case A, 10 products are produced spending P1,000 and
in Case B, 15 products are produced by spending P2,000.

Productivity in Case A = 10 / 1000

Productivity in Case B = 15 / 2000
 IMPORTANCE OF PRODUCTIVITY
 Productiveness increases the overall efficiency of an
organization.
 Increased production due to efficient utilization of
organizational resources leads to a lower cost production
resulting in better sales and profits.
 Concept of Productivity can be viewed from the following
points:
1. To beat the competition
2. Guide the management
3. Indicator of progress
4. Maximum utilization of scarce resources
5. Key to national prosperity
BENEFITS OF INCREASED PRODUCTIVITY
 To workers:
o Produces more wages
o Better standard of living
o Improved morale
o Satisfied worker
o Resulting into goodwill
 To the organization:
o Higher production of goods and services
o Reduction of costs
o Higher turnover, more profits and dividends
o Cheaper goods to customer
o Revenue to government
o Widespread markets and overall prosperity
BENEFITS OF INCREASED PRODUCTIVITY
 To nation:
o High employment opportunities
o Increased Gross National Produce
o Improved utilization of resources
o Expansion in international markets
 To consumers and society in general:
o Increase in supply of quality of goods and services
o Reasonable cost of goods and services
o Greater customer satisfaction
 FACTORS AFFECTING PRODUCTIVITY
 Controllable or Internal Factors
o Product
o Plant and Equipment
 Uncontrollable or External
o Technology Factors
o Material and Energy o Structural Adjustments
o Human Factors (Economic and Social)
o Work Methods o Natural Resources
o Management Style o Government Policy
o Financial Factors o Infrastructure
o Sociological Factors
 FACTORS AFFECTING PRODUCTIVITY
 Controllable or Internal Factors

o Product
The extent to which product meets output requirements.
Product is judged by its usefulness.

o Plant and Equipment

Increased availability of Plant through maintenance and reduction
of idle time increases the productivity.
 FACTORS AFFECTING PRODUCTIVITY
 Controllable or Internal Factors

o Technology
Innovative and latest technology improves productivity.
Various aspects of technological factors:
 Size and capacity of the plant
 Timely supply and quality of inputs
 Production planning and control
 Repairs and maintenance
 Waste reduction
 Efficient material handling systems
 FACTORS AFFECTING PRODUCTIVITY
 Controllable or Internal Factors

o Material and Energy

Factors that are to be considered:
 Selection of right and quality material
 Control of wastage and scrap
 Effective stock control
 Development of sources of supply
 Optimum energy utilization and energy savings.
 FACTORS AFFECTING PRODUCTIVITY
 Controllable or Internal Factors

o Human Factors
Productivity is dependent on human competence.
Motivation of employees will influence productivity.

o Work Methods
Improving the ways of doing work, improves productivity.
Focus on work study, industrial engineering techniques, and
trainings.
 FACTORS AFFECTING PRODUCTIVITY
 Controllable or Internal Factors

o Management Style
Influences organizational design, communication, policy and
procedures
 FACTORS AFFECTING PRODUCTIVITY
 Uncontrollable or External Factors

o Structural Adjustments
Economic changes that influence significantly:
 Shift from agriculture to manufacturing industry
 Import of technology
 Industrial competitiveness

o Natural Resources
Manpower, land and raw materials are vital to the productivity
improvement.
 FACTORS AFFECTING PRODUCTIVITY
 Uncontrollable or External Factors

o Government and Infrastructure

Influence productivity to a greater extent.
 CAUSES OF LOW PRODUCTIVITY LEVELS
 Lack of Employee Training
 Ineffective Management and Supervision
 Ineffective Organizational Structure
 Workplace Stress
 Toxic Workplace Behavior
 WAYS TO INCREASE PRODUCTIVITY
 Technology Based
o CAD, integrated CAM, Robotics, Laser beam technology, energy
technology, computer graphics, simulation, maintenance
management, rebuilding old machinery, energy conservation

 Employee Based
o Financial incentives, group incentives, benefits, promotion, job
enrichment, job enlargement, job rotation, worker participation,
skills enhancement, training, working condition improvement,
communication, punishment, recognition, quality circle,
education, role perception, supervision quality
 WAYS TO INCREASE PRODUCTIVITY
 Material Based
o Material planning and control, purchasing, logistics, materials
storage and retrieval, source selection and procurement of
quality material, waste elimination

 Process Based
o Methods engineering and work simplification, job design
evaluation, job safety, human factors engineering
 WAYS TO INCREASE PRODUCTIVITY
 Product Based
o Value analysis and value engineering, product diversification,
standardization and simplification, reliability engineering,
product mix and promotion

 Task Based
o Management style , work culture, communication in the
organization, motivation, promotion group activity
LEAN AND
5S
MICHAELA N. PANGILINAN
How the Principles of LEAN and 5s Improve the Productivity of the Business
Every business is—or should be—interested in finding ways to cut costs and increase profits while
still providing a quality product for its consumers.

EFFICIENCY AND PRODUCTIVITY

Two excellent practices any company can use to increase its efficiency
while maintaining a quality product are known as the 5S and LEAN
techniques.
 Lean manufacturing entails streamlining
processes and procedures to eliminate
waste and thereby maximize
productivity.

What is Lean Womack and Jones defined lean as, “a

way to do more and more with less and
manufacturing? less - less human effort, less equipment,
less time, and less space - while coming
closer and closer to providing customers
exactly what they want."
 Why is Lean
Manufacturing
Important and How Can
it Help?
01 Eliminate Waste

02 Improve Quality

03 Reducing Costs

04 Reducing Time
5S is defined as a methodology that results in a
workplace that is clean, uncluttered, safe, and What is 5s?
well organized to help reduce waste and optimize
productivity.
SEIRI - SORT
SEITON – SET IN ORDER
SEISO - SHINE
SEIKETSU - STANDARDIZE
SHITSUKE - SUSTAIN
IMPORTANCE IN THE
WORKPLACE

5S is a launching pad for success in the global

economy—when done right. Implementing 5S is
important in the workplace because it can result in
more efficient ways of getting the job done. For
example, business processes can flow more
efficiently when employees constantly strive to
clean and set their workspace in order.
Organizations can begin to maximize the benefits
of practicing 5S when they recognize the need to
be proactive in cutting down wastes in whatever
form they may be—wasteful movement, waiting
time, or step in the process.
5S CHECKLIST AND
AUDIT
 After the initial
implementation of 5S,
companies often develop
checklists of things they
need to check to ensure
standards and suggestions
are being followed. These
checklists are called 5S
Checklists.
 24h 37m 23s
earths is the Sun’s mass

386,000 km
is Jupiter’s rotation period

333,000.000
is the distance between the Earth and the Moon
4,498,300,000
Big numbers catch your audience’s
attention
5S audit
TALET
APP
- provides a framework for performing a comprehensive analysis of your work processes and your
ability to produce a quality product

- companies have been able to reduce defects, meaning fewer errors, fewer returns, and fewer
complaints from customers

- a systematic check of your work environment with the goal of identifying opportunities for
improvement

- involves evaluating current work conditions and making changes to improve the workplace

- Finally, 5S audits are used to support the implementation of standard work. It’s important to note
—the audit was not developed for the purpose of making recommendations. It is simply an
analysis of the standards and suggestions outlined by supervisors at a given manufacturing site.
Sarvang’s 5S Audit Tool- The Key to Safety and
Efficiency in Your Organization TALET
APP
5S audit application tool by Sarvang Infotech, which helps you achieve improved efficiency and
structured approach in your organization. With this 5S Audit Application Tool, you cannot just
increase productivity in your organization but also prevent any risk of injury to your employees.

Here are some of the salient features of the tool:

Monthly Audit Scheduler
Auditor’s Selection
Area Coordinator Section
5S Gallery
5S Issue Reporter
Alerts and Reminders
Notifications
5S Score Card
 References:
https://www.creativesafetysupply.com/content/education-research/5S/
index.html

https://www.lean-news.com/lean-5s-can-improve-productivity-business/

https://tulip.co/blog/5s-checklists/

https://citoolkit.com/templates/5s-audit-checklist/

https://asq.org/quality-resources/lean/five-s-tutorial

https://www.twi-global.com/technical-knowledge/faqs/faq-what-is-lean-
manufacturing

https://blog.5stoday.com/connection-between-5s-and-lean/
THANK YOU!