Productivity: Meaning, Concept, Formulas, Techniques, Measurement and Advantages

Provide a flexible work schedule instead of rigid working hours. (vii) A more productive enterprise can better export goods and earn valuable foreign exchange for the country. Reducing the input by maintaining the output as constant.

It is designed to optimize the manpower by capturing the creative and innovative power of the workforce. It provides workers an opportunity to participate in decisions about their work. It develops a sense of participation and contribution among workers. Production quotas are discouraged so that employees can allocate more of their time to leadership and the improvement of the production process. Many firms use teams of employees to assess quality and offer suggestions for continuous improvement.

Productivity: Meaning, Concept, Formulas, Techniques, Measurement and Advantages

Empower employees by providing training and an environment conducive for personal is well as organisational growth. It is vital to develop a high rate of productivity because it is the foundation of the business’s future growth. (iv) Similarly, gains of higher productivity can be shared with workers in the form of higher wages or salaries and better working conditions. There are economic, social and political factor that affects the productivity.

Computer integrated manufacturing is characterized by automatic line balancing, machine loading what is the ratio of output to input (scheduling and sequencing), automatic inventory control and inspection. It includes robotics, modern maintenance techniques, energy technology, Flexible Manufacturing System (FMS). Difficulty in communicating inter-industry linkages and aggregation.

Controllable Factors are considered as internal factors. These are the factors which are in control of industrial organization. Size of the market, banking and credit facilities, transport and communication systems, etc. are important factors influencing productivity. (a) Ability to work – Productivity of an organization depends upon the competence and calibre of its people—both workers and managers.

The ‘labour cost’ of goods has fallen dramatically

The act of monitoring and improving the quality of products and services produced is commonly referred to as total quality management (TQM), which was developed by W. A critical decision in production management is the selection of a site (location) for the factory or office. Location can significantly affect the cost of production and therefore the firm’s ability to compete against other firms. This is especially true for industrial firms such as Bethlehem Steel and DaimlerChrysler, which require a large investment in plant and equipment. Natural factors such as physical, geological, geographical and climatic conditions exert considerable influence on productivity, particularly in extractive industries. For example, productivity of labour in extreme climates (too cold or too hot) tends to be comparatively low.

Salaries within a city tend to be higher than salaries outside the city for a given occupation. Salaries are also generally higher in the North than the South for a given occupation. This is another reason why many companies have relocated to the South. (ii) Reduction in costs helps to improve the profits of a business. The enterprise can more successfully compete in the market.

For instance, bias on the basis of caste, religion, etc., inhibited the growth of modern industry in some countries. The joint family system affected incentive to work hard in India. Close ties with land and native place hampered stability and discipline among industrial labour. Industrial policy affects the size, and capacity of plants.

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Advanced technology requires knowledge workers who in turn work productively under professionally qualified managers. It is only through sound management that optimum utilization of human and technical resources can be secured. Similarly, a lower productivity indicates wastage of resources and time. It is vital to have a high productivity rate because resources like capital and time are scarce and should be exploited in the best possible way. Productivity can be calculated as the ratio of the volume of output to the volume of inputs. CAM is very much useful to design and control the manufacturing.

1. It includes robotics, modern maintenance techniques, energy technology, Flexible Manufacturing System (FMS).
2. The excess work content is due to the inefficient methods of manufacture and the defects in the design of the product.
3. Productivity is commonly defined as a ratio between the volume of output and the volume of inputs.
4. The arrangement of machines and position in the plant and the setup of the wore-bench of an individual worked will determine how economically and efficiently production will be ferried out.

Productivity is outcome of several interrelated factors. All the factors which are related to input and output components of a production process are likely to affect productivity. The concept of productivity can be applicable to any economy, small, medium and large business, government and individuals.

Productivity means an economic measure of output per unit of input. Output refers to the total production in terms of units or in terms of revenues while input refers to all the factors of production used like capital, labour, equipment, etc. Productivity is a good indicator of the efficiency with which a factory is operating. If a firm has higher productivity, i.e. it produces more with a given amount of inputs, it means it is utilising the resources properly. Productivity is a measure of the efficiency of production.

Elimination of sick and inefficient units helps to improve productivity. Technological factors exercise significant influence on the level of productivity. Productivity has been the driver of long term improvements in living standards. For example, the average Australian worker produces about as much in one hour today as it took a full day’s work to produce at Federation in 1901. This improvement in productivity has allowed incomes to rise even while working hours have fallen and Australian households have been able to enjoy more leisure.

It basically depends on the requirements of the application. For finding voltage ratio, we take reference as 1 V and proceed with the equation. Amplification in power by 3 dB therefore indicates that the output power is twice the input power. We need to convert this linear ratio into logarithmic ratio to arrive at the solution.