2. Production
• It is a process of creating or enhancing utility
by transforming a set of inputs such as men
machinery, material & money into a specific
set of output such as finished goods or
services
• It is a process by which goods & services are
created
4. • It may be defined as the ratio between output &
input
• Output means the amount or numbers of items
produces & inputs are the various resources
employed such as men machinery, material & money
• It is the measure of the quantity of output per unit of
input
Productivity = Amount of Output/Amount of Input
Productivity
5. Productivity Index
Labor productivity =
Output
No of Labour employed
Direct labor cost productivity =
Output
Amount of wages paid
Capital productivity =
Output
Capital Employed
Energy productivity =
Output
No. of Units of power used
Raw material productivity =
Output
Cost of raw materials
Direct cost productivity =
Output
Sum of all direct costs
Material productivity =
Output
Cost of
(Raw Material+ Packaging material+ Supplies)
Total Factor Productivity =
Output
Labour+ Capital Invested
6. Factors affecting Productivity
Factors affecting national productivity
1. Human resources
2. Technology and Capital Investment
3. Government Regulation
Factors Affecting Productivity in organization:-
1. Product( or system ) design
2. Machinery and Equipment
3. Skill and Effectiveness of the worker
4. Production Volume
7. Measures to Increase Productivity
• Material
• Labor
• Plant, Equipment and Machinery
• Land and Buildings
8. Types of Production Methods / Systems
1. Continuous
• Mass production
• Process or continue flow type
2. One time Large Projects
3. Intermittent
• Batch production
• Job Production
