What is productivity ?

1. What is productivity ? Working harder Cutting jobs Reducing staff and workers Extra work for managers Employing specialists A thought on production and productivity Production is the process of converting resource into products or Services . It is usually measure in terns of output per time period Example – boxes per hour, tones per day, bookings per months etc. Or Cost per unit of output . 10/- per box / 20 per kg.

2. Output Production Output Resource Conversion Manpower Machinery Materials Money Agriculture Mining Industry Services Products Services Resources Process Carry bricks By hand 500 bricks / day 1 man Carry bricks By hand 550 bricks / day 1 man = over time If we increase the resource by making a worker work OT we will increase the out put Of the process and so meet our market needs. But may not improved our cost.

3. If we modify the process to enable the man to produce more without Working harder or longer we may be able to meet our target and reduce The cost of the input as well.

4. By adding to the resource and changing the process there is an increase in Production – 60% and reduced the unit cost by 6% This is what is productivity.

5. Input Unit of Measurement Productivity Manpower Machinery Materials Money Per Man hour Per machine hour Per materials unit Per Rupee of input Productivity is simply a measure of the ratio between the output of a process And the input of recourses needed. Output can measured in terms of units or volumes ( e.g. Tones, litres, boxes Tiles, tablets).

6. How do we improve Productivity ? The cost of any product or service is sum of the costs of the resources Used in producing it. Machinery means all machines , equipment,& transport used Material means raw material or semi finished and also power, gas, steam and Other utilities used . The more productive each of those resources can be made will lead lower Final cost of the product. • Five ways to improve productivity • Increase input but get a greater increase in output • Maintain input but increase output • Decrease input with a smaller decrease in output • Decrease input but maintain output • Decrease input but increase output

7. Case study 3 workers a. Attached rotating machine b. Motor and threading Machine c. Blades fitting Labour turn over was high No of rejects were also high Labour was demoralized The new manager joined and attended a training program on productivity and soon Came and changed few things Selected two workers of the three and made them responsible for entire assembling Of the fan. He also made them inspect the fan sign on the tag attached. After some time both started learning and enjoying and started competing with Each other. result - the productivity started increasing dramatically

8. Out put by input By decreasing one person he decreased the manpower by 33% There was a decrease in Net output by only 10% While productivity increased by 33% There was a decrease in cost of labour and material What process was adopted by the manager to increase the productivity

9. Productivity improvement commandments • Discard conventional fixed ideas. • Think of how to do it better, not why it cannot be done. • Start by questioning current practices, methods and resources used. • Do not make or accept excuses. • Others will follow you, if you continually seek improvement. • Leave the search for 'perfection' to others. • Do it right away even if it will only achieve 50% of target. • If you make a mistake, correct it right away. • Throw wisdom at a problem, not money. • Seek the wisdom inherent in your people rather than the knowledge of one. • Ask 'WHY?" five times and seek root causes. • Don't ask workers to leave their brains at the workplace entrance

11. Productivity is about making work: • Simpler • Easier • Quicker • Rewarding • Safer • Fun • for employees. Conceptual models enable you to quickly understand, • develop and adapt the model to your specific workplace situation. Essentially, productivity is a ratio to measure how well an organization (or individual, industry, country) converts input resources (labor, materials, machines etc.) into goods and services. This is usually expressed in ratios of inputs to outputs. That is (input) cost per (output) good / service. It is not on its own a measure of how efficient the conversion process is

13. There are six lines of attack to improve the productivity ratio of an organization, • Improve basic process by research and development (long term) • Improve and provide new plant, equipment, and machinery (long term) • Simplify product and reduce variety (medium term) • Improve existing methods and procedures (short term) • Improve the planning of work and the use of manpower (short term) • Increase the overall effectiveness of employees (short term)

14. Review Productivity improvement is not a job for specialists only – it should be a part of every job in the in the organization Although related, productivity and production are not the same Production is the process of converting resources into products and Is measured as the quantity produced in a given time. While productivity is the ratio between the output of a process And its inputs and is measured as output divided by input. Productivity improvement requires the optimal use of all resources Manpower, material amd money – not simple manpower alone

15. How is Productivity measured ? Fundamental principle of productivity improvement That the productivity of the existing process should be measured before an attempt to improve. e.g page 15 The first basic measurement is Single Resource Productivity ( SRP )

16. Input = 20 Man hours = 20 manhours 10 machine hours 450 meters card board 2 litres glue Manpower Machinery Materials

17. Standards Setting productivity standards The standards gives you something to aim at

20. Total Resource Productivity Old method