Introduction to Productivity Improvement

Description
Productivity has many benefits. At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education.

? Productivity is misunderstood by people who use it

Simply put – Resource Organization Goods/Services Then, Productivity = Output = Value of Good/Services Input Cost of Resources

? Productivity is a term that encapsulates the quality of

conversion process from a series of resource inputs to outputs, and subject to satisfactory measurements.

? Paul Mali- recognizes this issue in his book Improving

total productivity ? Productivity requires resources such as plant productivity, capital, material, technology productivity etc. Productivity Index = Performance achieved = Effectiveness Resources consumed efficiency

Increasing Productivity
? Increase in volume over a period of time
? Produce same volume over a period of lesser time ? Produce the same volume for lesser Inputs & time

Misconception in Measuring Productivity
? It is not a measure of volume of productions.
? It is not measurement of profitability ? It is not an anti-inflationary measure

? It is not a technique to make a worker harder.

Higher productivity and Reduced Cost
Other factors remaining constant ? When wages are paid on hourly basis ? Overheads are absorbed on time basis

Productivity and Quality
? Productivity and Quality goes hand in hand.

Example Japanese TV sets and Automobile.

Advantages of Higher Productivity
? To an individual concern
? To the workers ? To the Industry

? To the government

Theory of Constraints
? The Theory of Constraints was written by Eliyahu M

Goldratt and Jeff Cox in 1984.

Thank you

& All the best for your future endeavor



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