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Productivity Improvement R

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Productivity Improvement R

  1. 1. Productivity In economics, Productivity is the ratio of what is produced to what is required to produce. Productivity is the measure on Production efficiency.
  2. 2. Productivity Model • Economic growth is input dependent. • Productivity increase is the production function.
  3. 3. Productivity Improvement How to realize Improvements: • Achieving more output for the same input • Achieving the same output from less input • Achieving much more output for slightly more input • Getting slightly less output for much less input How to improve the productivity ratio of an organization, • Improve basic process by research and development (long term) • Improve and provide new plant, equipment, and machinery (long term) • Simplify product and reduce variety (medium term) • Improve existing methods and procedures (short term) • Improve the planning of work and the use of manpower (short term) • Increase the overall effectiveness of employees (short term)
  4. 4. Productivity Improvement • Productivity Studies – Analysis of technical processes and engineering relationship. – Related to concept of Efficiency. • Increase in Productivity – Automation and computerization – Ergonomic design and worker comfort. • Labor Productivity – Average output per worker or per worker-hour – Not the Marginal product of Labor (by increasing no. of workers)

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