Productivity

Productivity refers to the efficiency of production system. It is the concept that guides the management of production system. Productivity is an indicator of how well the factors of production are utilized. Productivity is measured by achievement toward established goals based on quantitative relationship between what we produce and what we use as a resource to produce it.

Productivity

=

Output Input

European Productivity Agency (EPA) has defined productivity as,

“Productivity is an attitude of mind. It is the mentality of progress of the constant improvements of that, which exists. It is the certainty of being able to do better today than yesterday and continuously. It is the constant adaptation of economic and social life to changing condition. It is the continual effort to apply new technique and method. It is the faith in human progress.” 

1.  Production

Production is defined as the process or procedure to transform a set of input into output having the desired utility and quality. Production is a value-addition process. 

2.  Production vs. Productivity

The concept of production and productivity are totally different. Production refers to absolute output whereas productivity is a relative term where output is always expressed in term of inputs. Increase in production may or may not be an indicator of increase in productivity.

3.Productivity is said to be increased-

1. When the production increases without increase in inputs.

2. When the production remains same with decrease in inputs.

3. When the output increases more as compared to input. 

4.  Variables of Productivity

Direct variable
1.    Number of operator or machine
2.    Working hour
3.    Worker efficiency
4.    Standard time
5.    Machine RPM
6.    Technology and work aid

Indirect variable
1.    Training
2.    Motivation
3.    Work environment
4.    Lower absenteeism
5.    Lower migration of worker
6.    Better maintenance of machine
7.    Job satisfaction

5.  Factor (internal) influencing Productivity

Plant and equipment

These play a significant role in enhancing the productivity. The increased availability of the plant through proper maintenance and reduction of idle time increases the productivity. Productivity can increased by playing proper attention to utilization, age, modernization, cost investment etc.

Technology

Innovative and latest technology improves productivity to a greater extend. Automation and information technology helps to achieve improvements in material handling, storage, communication system and quality control. The various aspects of technological factors are considered.

Human factor

Productivity is dependent upon human competence and skill. Ability to work efficiency is governed by various factor such as education, training, experience, aptitude, etc. of the employees. Motivation of employees will influence productivity.

Work method

Improving the ways, in which the work is done, improves productivity. Work-study and industrial engineering techniques and training are the areas which improve the work methods which in term enhance the productivity

Management style

This influences the organizational design, communication in organization, policy and procedures. A flexible and dynamic management style is a better approach to achieve higher productivity.

6.  Productivity Improvement Technique

Technology based
CAD, CAM, RFID, MRP, CRP, CIM, FMS

Employee based
·   Financial and non-financial incentives at individual and group level
·   Employee promotion
·   Worker participation in decision making

Process based
·   Method engineering and work engineering
·   Job design, job evaluation, job engineering
·   Human factors engineering

Management based

·   Management style

·   Motivation

7. Why Productivity Improvement?

Higher productivity means that more is produced with the same expenditure of resources i.e. at the same cost or alternately that the same amount is produced at less cost thus releasing some of these resources for the production of other things i.e. surplus.

Productivity rise stands for creation of a higher level of surplus in the output over the input than before. Prosperity, both for an individual and for a nation as a whole, is the result of distribution of that surplus. The higher the surplus, the greater is the productivity. Productivity therefore means prosperity. With the rise in productivity the benefits are as follows:

Benefits for Company
·   Business growth
·   Profitability
·   Customer satisfaction

Benefits for Employee
·   Increase salary
·   Better Job satisfaction
·   Increase job loyalty

Benefits for Consumer
·   Decrease lead time
·   Better quality product
·   Better satisfaction.

8. Factor affecting productivity in apparel production

·         Raw Materials

·         Personal factors

·         Absenteeism

·         Labor turnover

·         Job deskilling

·         Job satisfaction

·         Incentives

·         Management factors

·         Size of firm

·         Training

·         Product design study

·         Entrepreneurial Skill