2. • According to International Labour Organisation (ILO);-
“The ratio between the volumes of output is measured by production
indices and the corresponding volume of labour input is measured by
employment indices”.
The productivity is measure of how much input is
required to achieve the given output.
Productivity =
Concept Of Productivity
3. Concept Of Productivity
• Production is systematic activity to convert row material into finish products
which have higher value.
• Production is calculated through the output generated and is independent of the
quantity of inputs used for this purpose.
• The production quantity may be increased by employing more human resources
,inputs or by installing more machinery without considering cost.
• Increase in production does not always correspond to increase in efficiency.
• Higher productivity may be achieved by increasing the efficiency of the resources
used.
4. Modes of measurement of Productivity
Modes of calculating /
measurement of productivity
Partial
Productivity
Total factor
Productivity
Total
Productivity
5. Labour Productivity =
Capital Productivity =
Material Productivity =
Partial Productivity
6. Total Factor Productivity
• Some factor of production are available in-house
while others need to be brought from outside.
Total Factor Production =
7. Total Productivity
• This concept refers to the ratio of total output to sum of all the resources
used for producing them. It should be noted that input as well as output
are expressed in physical and real terms such currency prevailing during
a reference period. This is also known as base period.
Total Productivity =
8. Labour Productivity
• Labour productivity depends upon how labours are utilised.
• Labour productivity can be higher or lower depending on factors like
availability of work load ,material, working tools, availability of power ,
work efficiency, level of motivation, level of working condition, etc.
Labour productivity can be measured in terms of hours or
money.
Labour Productivity =
9. Labour Productivity (In terms of Hours) =
Labour Productivity (In terms of Money) =
Labour Productivity
10. • Example 1: A company that processes fruits and vegetables is able to
produce 400 cases of canned peaches in one half hour with four workers.
What is labour Productivity?
Solution:-
Labour Productivity =
=
= 200 cases per labour hour.
Labour Productivity
11. Machine Productivity
• Production system converts raw material into finished product through
mechanical or chemical process with the help of machines and
equipments.
Machine productivity depends upon availability of raw material,
power, skill of workers, machine layout, etc.
Material Productivity = Or
Material Productivity =
12. • Example 1:Compute for the productivity of a machine
produced 68 usable pieces in two hours.
Solution:-
Material Productivity =
=
= 34 pieces/hours.
13. Tools Of Increasing Productivity
• Product Development.
• Specialization and Standardization.
• Market consumer and Product Research.
• Value Analysis.
• Process Planning and Research.
• Method Study.
• Work Measurement.
• Operator Training.
14. • Production Planning and Control.
• Material Control.
• Plant Maintainance.
• Improved working Conditions.
• Safety.
• Personal Policy.
• Incentives.
Tools Of Increasing Productivity
15. Factors Influencing Productivity
Factor Influencing Productivity
Technological Development
Individual factors
Organization Factors
Work Environment
Others Factor
16. Technological Development
Size of the Plant
Research and Development.
Plant and Job Layout.
Machine and Equipment Design.
Production Processes.
Power ,Raw Material etc.
Scientific Management Techniques.
Factors Influencing Productivity
18. Importance Of Productivity
1. To Beat the Competition.
2. Guide to Management
i. Strategic.
ii. Tactical.
iii.Planning.
iv.Administration.
19. 3. Indicator of Progress.
4. Maximum Utilization of Scarce Resources.
5. Key to National Prosperity.
6. Prosperity To Labour.
Importance Of Productivity
