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  2. 2. 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.
  3. 3. 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.
  4. 4. 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
  5. 5. 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 reducedproductivity.
  6. 6. Types Of Productivity
  7. 7. PRODUCTIVITYPartial Total
  8. 8. 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
  9. 9. Example….. #S.No. Input factor Rs .in millions1. No. of employees 3000 numbers2. Employee cost 40003. Capital employed 5004. Energy consumed 4005. Number of client dealt with 35 numbers6. Number of new clients added 5 numbers7. Number of computer used (material cost) 2000 numbers8. Other expenditure 50 Output 10000
  10. 10. 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.
  11. 11. Total productivity providessystematic framework andstructure to an organization and increase profitability. Total Total Output Total Input Productivity
  12. 12. PRODUCTIVITY & PRODUCTION The production is indicated by output quantity.
  13. 13. 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.
  14. 14. TQM- TOTAL QUALITY MANAGEMENT Total Quality Management (TQM) is an approach that seeks toimprove quality and performance which will meet or exceedcustomer expectations. TQM looks at the overall quality measures used by a company
  15. 15. 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
  16. 16.  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.
  17. 17. Poka YokePoka Yoke, also called mistake proofing, is asimple method to prevent defects from occurringin your business processes. Poka Yoke translates into English as to avoid(yokeru) errors (poka). The result is a businessthat wastes less energy, time and resources doingthings wrong in the future.Eg. Check list for important work or importantdocuments
  18. 18. 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.
  19. 19. 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 reduceoutput and quality losses due to changeovers. The methods strength is the systematic approach to analyse what isactually done and how time is spent during the changeover activity.
  20. 20. 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
  21. 21.  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
  22. 22. SIX SIGMA Champions and Sponsors Master Black Belt Black Belt Green Belt Staffing Levels and Expected Returns
  23. 23.  Business ProcessBPR- Business Process Reengineering is theReengineering 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.
  24. 24. Constraints/problems in increasing productivity1. Government regulations• Various taxations-• environment laws2. Registrations & approvals –• Registrations• Licensing3. Union rules• Trade unions play constructive role• Sometimes these rules are misused4. Management limitations• Changing environment,• certain disasters – natural & accidental,5. Employee related issues• Human limitations• Unskilled employees• Employee attitudes
  25. 25. 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,
  26. 26. Case study cont…  3.Google improves its productivity by motivating employees – • Fringe benefits • Medical insurances • Body care services • Entertainment services • Household services Etc etc
  27. 27. Conclusion• Various ways of improving productivity• For a firm to survive & prosper, improving productivity is a must