Description
The PPT explains about Produtivity.
Competing with Productivity
Quality ? Timeliness ? Value ? Variety price
How are productivity and price related?
Outputs Productivity ? Inputs
?
?
Inputs: labor, materials, capital, … Outputs: goods, services
If you were living in 1800 instead of today, what would you be doing?
Percent of the labor force
100 90 80 70 60 50 40 30 20 10 0
Agriculture
18 00 18 20 18 40 18 60 18 80 19 00 19 20
Mfg
Year
19 40 19 60 19 80 20 00
Services
Knowledge
http://www.mdagnrpolicy.org/Publications/Reports/full-texts/00-02/Figure-1.htm
Bread Milk Car House Income
1900 0.10 1.04 1,726.84 13,814.76 $ 687.00
2002 0.03 0.09 727.84 7,300.09 $ 71,032.00
Avg US auto plantUS auto Best worse than worst plant worse Japanese than average plant Japanese plant
50 45 40 35 30 25 20 15 10 5 0 Best Average Worst
Japan U.S. Europe
Relative Manufacturing Productivity -- Automobiles 1987
Dertouzos, Lester, Solow, Made in America: Regaining the Productive Edge, MIT Press, 1989.
?
?
?
Single Factor Productivity (SFP) Total Factor Productivity (TFP) Multi Factor Productivity
?
? ?
?
Measures increase in productivity in relation to a single factor of production Labor, materials, capital, … Productivity = Output / Single Input Example:
Output Period 1 1000 units Period 2 1100
Labor Productivity 100 hrs 10.0 units / hour 105 10.6 units / hour
?
Problem: too easy to substitute factors
Company purchases casting and machines them ? Decides to purchase pre-machined parts ? Lays of skilled, sells machines ? Output remains constant, labor reduced ? Labor productivity up 5% (!) ? BUT: pre-machined parts cost 20% more ? SO: material productivity declines by 20% (!!)
?
?
Retail outlet: sales per sq ft. Restaurant :customer meals per labor hour Utility Plant: Kilowatts per coal ton
?
?
?
?
Measures increased in productivity from all relevant factors of production Productivity (TFP) = all outputs / all factor inputs
?
Use of Appropriate mix of inputs and outputs.
doc_572983363.ppt
The PPT explains about Produtivity.
Competing with Productivity
Quality ? Timeliness ? Value ? Variety price
How are productivity and price related?
Outputs Productivity ? Inputs
?
?
Inputs: labor, materials, capital, … Outputs: goods, services
If you were living in 1800 instead of today, what would you be doing?
Percent of the labor force
100 90 80 70 60 50 40 30 20 10 0
Agriculture
18 00 18 20 18 40 18 60 18 80 19 00 19 20
Mfg
Year
19 40 19 60 19 80 20 00
Services
Knowledge
http://www.mdagnrpolicy.org/Publications/Reports/full-texts/00-02/Figure-1.htm
Bread Milk Car House Income
1900 0.10 1.04 1,726.84 13,814.76 $ 687.00
2002 0.03 0.09 727.84 7,300.09 $ 71,032.00
Avg US auto plantUS auto Best worse than worst plant worse Japanese than average plant Japanese plant
50 45 40 35 30 25 20 15 10 5 0 Best Average Worst
Japan U.S. Europe
Relative Manufacturing Productivity -- Automobiles 1987
Dertouzos, Lester, Solow, Made in America: Regaining the Productive Edge, MIT Press, 1989.
?
?
?
Single Factor Productivity (SFP) Total Factor Productivity (TFP) Multi Factor Productivity
?
? ?
?
Measures increase in productivity in relation to a single factor of production Labor, materials, capital, … Productivity = Output / Single Input Example:
Output Period 1 1000 units Period 2 1100
Labor Productivity 100 hrs 10.0 units / hour 105 10.6 units / hour
?
Problem: too easy to substitute factors
Company purchases casting and machines them ? Decides to purchase pre-machined parts ? Lays of skilled, sells machines ? Output remains constant, labor reduced ? Labor productivity up 5% (!) ? BUT: pre-machined parts cost 20% more ? SO: material productivity declines by 20% (!!)
?
?
Retail outlet: sales per sq ft. Restaurant :customer meals per labor hour Utility Plant: Kilowatts per coal ton
?
?
?
?
Measures increased in productivity from all relevant factors of production Productivity (TFP) = all outputs / all factor inputs
?
Use of Appropriate mix of inputs and outputs.
doc_572983363.ppt