Productivity is a measure of how efficiently resources are used to produce goods and services. It is calculated as the output divided by the resources used. Management contributes the most to annual increases in productivity, followed by capital and labor. Factors like technology, resources, management style, and infrastructure affect enterprise productivity. Techniques to improve productivity focus on technical processes like work study, value analysis, and six sigma as well as human approaches like brainstorming and organization development.

1. ProductivityProductivity
Productivity is the amount of products or servicesProductivity is the amount of products or services
produced with the resources used. Aproduced with the resources used. A
comparative tool.comparative tool.
Productivity = Quantity of products or servicesProductivity = Quantity of products or services
producedproduced
Amount of resources usedAmount of resources used
Productivity varies with the amount ofProductivity varies with the amount of
production relative to the amount of resourcesproduction relative to the amount of resources
used.used.

2. Productivity VariablesProductivity Variables
 LabourLabour - contributes about 1/6 of the annual increase- contributes about 1/6 of the annual increase
 CapitalCapital - contributes about 1/6 of the annual increase- contributes about 1/6 of the annual increase
 ManagementManagement - contributes about 4/6 of the annual increase- contributes about 4/6 of the annual increase

3. Factors Affecting ProductivityFactors Affecting Productivity
Enterprise Productivity factors
Hard factors
Internal factors External factors
Soft factors Natural resourcesStructural
adjustments
Govt. and
infrastructure
•Product
•Plant and Equipment
•Technology
•Materials and Energy
•People
•Organization and systems
•Work methods
•Management styles
•Economic
•Social
•Manpower
•Land
•Policies and
strategies
•Infrastructure

4. Productivity improvement techniquesProductivity improvement techniques
 Productivity improvement is not just doing things better; It is doing the right thinProductivity improvement is not just doing things better; It is doing the right thing
better.better.
 Productivity is often measured as the output of goods/services in a given numberProductivity is often measured as the output of goods/services in a given number
man hours / machine hours.(Time)man hours / machine hours.(Time)
 Total time of a job is made up ofTotal time of a job is made up of
Basic Work content Work content added
by defects in design
Work content added by
inefficient methods
Ineffective time due to
shortcomings of
management
Ineffective time
worker
Total work content Total Ineffective time

5. Productivity improvement techniquesProductivity improvement techniques
Technical approachTechnical approach
Work studyWork study
Value analysisValue analysis
JIT / KAIZEN / KANBANJIT / KAIZEN / KANBAN
Cellular ManufacturingCellular Manufacturing
Pareto analysisPareto analysis
Six sigmaSix sigma
Product developmentProduct development
Cost benefit analysisCost benefit analysis
OM toolsOM tools
Process PlanningProcess Planning
Human approachHuman approach
Bain stormingBain storming
Organization developmentOrganization development
Force field analysisForce field analysis