PRODUCTIVITY

It is a measure of how much inputs are required to produce a given level of output. It is the ratio of output to input. According to Peter Ducker, “Productivity means a balance between all the factors of production that will give the maximum output with the minimum efforts”.

Productivity = Measures of output
Measures of input

Pt = Qt . Where – Pt = Total Productivity
L+C+R+M Qt = Total output
L = Labour
C = Capital
R = Raw Material
M = Machine

Benefits of Productivity

1. Increase in production.
2. Decrease in per unit cost.
3. Better utilization of resources.
4. Avoid wastage.

Method/Tools for Increasing Productivity

1. Better planning and training of employees.
2. Use of time and motion study methods to increases the workers performance.
3. Better transportation and material handling system.
4. Improvement in the technology of production process.
5. Stnadardisation, simplification and specialization techniques for production.
6. Efficient utilization of resources.
7. Use of scientific inventory control techniques such as ABC analysis, VED (V=Vital, E=essential, D=desirable) etc.

Some Measures of Productivity

1. Labour Productivity = Total output ÷ Labour
2. Capital Productivity = Total output ÷ capital
3. Profit Productivity = Profit ÷ Investment
4. Aggregate Productivity = Qt .
L+C+R+M


PROCESS CHART

It includes different symbols which are used far the different operations carried out by an organization. We have following symbols to represent the different operation of production system:

1 = Operation to be done


2 = Inspection


3 ======> = work In process


4. = storage



5. = Delay




6. = Operations/inspections are to be carried out simultaneously.