2. GROUP MEMBERS
NAMES :- ROLL NO.
 PRIYANKA GAIKWAD 11
 SIDDHI JOSHI 12
 JAY PAREKH 28
 NILESH VAZIRANI 50
 KIRAN ZORE 57

3. Introduction
 Productivity is the output of any production process, per unit
of input.
 To increase productivity means to produce more with less.
 In factories and corporations, productivity is a measure of the
ability to create goods and services from a given amount of
labour, capital, materials, land, resources, knowledge, time or
any combination of those.
 Output per unit of input employed.
 Increase productivity on the part of capital and labour.

4. Measurement of productivity
 Productivity can be measured, The amount of output
per unit of input.
 In a factory, it might be measured based on the
number of hours it takes to produce a good.
 While in service industry, might be measured based
on the income generated by an employee divided by
his/her salary.

5. Definition and Equation
Productivity is the ratio of output and input in any organization.
Productivity = Output
Input
Output is in the form of product quantity and input is in the
form of resources. The resources are in the form of
• Land acquired
• Salaries paid to employees
• Amount paid to purchase material
• Amount spent in infrastructure

6. Examples
In case A, 10 products are made by
spending 1000 rupees and in case B, 15
products made by spending 2000 rupees.
 Productivity in case A = 10 / 1000
Productivity in case of B = 15 / 2000
In case B, it is an indication of reduced
productivity.

7. Types Of Productivity

8. PRODUCTIVITY
Partial Total

9. Partial Productivity
• The resources of productivity when measured
separately are called partial productivity.
• “Apple to Apple” comparison.
labor hours
Partial output in a
used in
productivity given period
period

10. Example….. #
S.No. Input factor Rs .in millions
1. No. of employees 3000 numbers
2. Employee cost 4000
3. Capital employed 500
4. Energy consumed 400
5. Number of client dealt with 35 numbers
6. Number of new clients added 5 numbers
7. Number of computer used (material cost) 2000 numbers
8. Other expenditure 50
Output 10000

11. Total Productivity
• The method of calculating productivity
considering all the resources is called total
productivity.
• Innovated by David j. Sumanth.
• It is systematic and qualitative approach to
compete in quality, price and Time.

12. Total productivity provides
systematic framework and
structure to an organization
and increase profitability.
Total
Total Output Total Input
Productivity

13. PRODUCTIVITY & PRODUCTION
 The production is indicated by output quantity.


14. Productivity Benefits
 Increase in income/profitability.
 Lowering running cost/operational costs.
 Maximising the use of all of the company’s resources such as
land, equipments/machineries, factory, workers, and etc.
 Gaining a greater share of the market.
 More cash flows mean more opportunity for the company to
expand and grow.

15. TQM- TOTAL QUALITY
MANAGEMENT
 Total Quality Management (TQM) is an approach that seeks to
improve quality and performance which will meet or exceed
customer expectations.
 TQM looks at the overall quality measures used by a company

16. BENEFITS OF TQM
 Ability to be more competitive
 Increased market share
 Cost reduction
 Increased flexibility and responsiveness
 Simplified processes
 Improved communications
 Less frustration and more satisfaction among the work force

17.  KAIZEN is a Japanese
word meaning gradual
and orderly, continuous
improvement. The
KAIZEN business strategy
involves everyone in an
organization working
together to make
improvements 'without
large capital
investments'.

18. Poka Yoke
Poka Yoke, also called mistake proofing, is a
simple method to prevent defects from occurring
in your business processes.
 Poka Yoke translates into English as to avoid
(yokeru) errors (poka). The result is a business
that wastes less energy, time and resources doing
things wrong in the future.
Eg. Check list for important work or important
documents

19. HOUSE KEEPING
 It is a systematic approach for better workplace.
 It assigns a place for everything and ensures everything in its
place.
 It follows certain principles like
cleanliness, organization,discipline,orderliness.

20. SMED (SINGLE DIGIT MINUTE EXCHANGE)
“ REDUCE YOUR SETUP AND ADJUSTMENT TIME
FROM HOURS TO MINUTES”
 Single Minute Exchange of Dies (SMED) is the approach to reduce
output and quality losses due to changeovers.
 The method's strength is the systematic approach to analyse what is
actually done and how time is spent during the changeover activity.

21. 5’S
 The 5S Process, or simply "5S", is a structured program to
systematically achieve total organization, cleanliness, and
standardization in the workplace.
 Seiri
• Tidiness
• Throw away all rubbish and unrelated materials in the workplace
 Seiton
• Orderliness
• Set everything in proper place for quick retrieval and storage

22.  Seiso
• Cleanliness
• Clean the workplace; everyone should be a janitor
 Seiketsu
• Standardization
• Standardize the way of maintaining cleanliness
 Shitsuke
• Discipline
• Practice 'Five S' daily - make it a way of life; this also means
'commitment'

24. SIX SIGMA
 Champions and Sponsors
 Master Black Belt
 Black Belt
 Green Belt
 Staffing Levels and Expected Returns

26.  Business Process
BPR- Business Process Reengineering is the
Reengineering analysis and design of
workflows and processes
within an organization. A
business process is a set of
logically related tasks
performed to achieve a
defined business outcome.

27. Constraints/problems in increasing productivity
1. Government regulations
• Various taxations-
• environment laws
2. Registrations & approvals –
• Registrations
• Licensing
3. Union rules
• Trade unions play constructive role
• Sometimes these rules are misused
4. Management limitations
• Changing environment,
• certain disasters – natural &
accidental,
5. Employee related issues
• Human limitations
• Unskilled employees
• Employee attitudes

28. Case study
 1. GACL ( Gujarat Alkalies & Chemical Ltd.)
improves productivity by reducing cost-
• The company introduced an Australian device
called Surface Miner.
(To reduce the noise and vibration that
occurred during the conventional
drilling, blasting and crushing process)
• Use of larger pre-heater (increase
production)
 2.Wal mart improves its productivity by
increasing efficiency –
• Use of Electronic Data Interchange,

29. Case study cont…
 3.Google improves its
productivity by motivating
employees –
• Fringe benefits
• Medical insurances
• Body care services
• Entertainment services
• Household services
Etc etc

31. Conclusion
• Various ways of
improving productivity
• For a firm to survive &
prosper, improving
productivity is a must