When the job is engineered to workers the dehumanization element is reduced so as to improve productivity and to reduce cost. It provides an opportunity for the satisfaction of higher level needs. Productivity may be measured either on aggregate bases or on individual basis, which are called total and single factor productivity respectively. An assembly line consists of a sequence of work stations in which each work station is designed to cover specific phases of the production process. The production of a single product may require several work stations, with each station using employees, machinery, and materials.
Productivity: Meaning, Concept, Formulas, Techniques, Measurement and Advantages
Therefore, according to these management experts, the concept of factorial productivity is meaningless. The excess work content is due to the inefficient methods of manufacture and the defects in the design of the product. The total ineffective time is due to the poor attitude of the workers and the lack of management interest. Management is defined as the organisation and control of different activities involved to achieve higher productivity. The manufacturing time of a job is equal to the total content plus the total ineffective time.
It helps to achieve the effectiveness in production system by line balancing. The output of an industry may be measured in terms of volume (units) or value (Rupee). If the output is homogeneous, then the productivity can be measured in terms of volume. If the output is not homogeneous, then the productivity can be measured in terms of rupee. Total Productivity Model was developed by David J. Sumanth in 1979 considered five items as inputs.
(iii) The gains of higher productivity can be passed on to consumers in the form of lower prices and/or better quality of products. Uncontrollable factors are known as external factors and these factors are beyond the control of the individual industrial organization. Human nature and human behavior are the most significant determinants of productivity. Human factors include both their ability as well as their willingness. The ratio between the input energy to the output energy of a machine is called its efficiency.
Human nature and human behaviour are the most significant determinants of productivity. Producing same level of outputs with reduced level of inputs. Upon simplification, we get the reference power level as 3 mV. It is important to note that 1 V, 1 W, 1 mW and so on may not always be the fixed reference levels. Some of the reference power levels used intelephone and broadcasting industries include 6 mW, 10 mW, 12.5 mW and so on.
Why Political Behaviour In Organizations Increases?
Natural resources like water, fuel and minerals influence productivity. “Productivity refers to the efficiency of the production system and an indicator to; how well the factors of production (land, capital, labor and energy) are utilized”. The most accurate estimates of productivity are for those industries where prices are set in markets — known as the ‘market sector’. Market prices provide a measure of the quality of different products and make it easier to measure output in terms of real industry gross value added.
To ensure that quality is maintained, firms periodically evaluate the methods used to measure product or service quality. The design and layout decisions directly affect operating expenses because they determine the costs of rent, machinery, and equipment. They may even affect the firm’s interest expenses because they influence the amount of money that must be borrowed to purchase property or machinery.
All these schemes foster sense of belonging and closer human relationships. As a result, there is reduction in idle time caused by absenteeism, labour turnover, accidents and disputes. Scientific analysis and improvement of work in all its aspects is a very useful technique of increasing productivity. Work study results in improvements in plant layout, material handling system, process design and standardization, working conditions, etc. These in turn help to minimize defective works and waste.
What is productivity?
Firms now realize that it is easier to retain existing customers than it is to attract new customers who are unfamiliar with their products or services. Thus, firms are increasingly recognizing the impact that the quality of their products or services can have on their overall performance. Customers are more likely to purchase additional products from the same firm if they are satisfied with the quality. Since the cost of all these resources along with the building can be substantial, efficient management of the production process can reduce expenses, which can convert into higher profits.
Products and services
A high productivity means that the resources are utilised to the optimum, while minimizing wastage. This leads to reduction in cost of production, and subsequently availability of quality products to customers at lower price. Profitability of the firm is also related to its productivity.
- Even if such records are available, it is very difficult to calculate the exact number of man hours worked i.e. the input of labor.
- Higher productivity brings lower prices for consumers and higher dividend for shareholders.
- A quality circle is a small group of workers which regularly meets to discuss problems, investigate causes, recommend solutions and if authorized, to take corrective action.
Amplifier Gains – Solved Problems on Power & Voltage Ratios
Productivity refers to the physical relationship between the quantity produced (output) and the quantity of resources used in the course of production (input). After making these adjustments, Australia’s labour productivity is high by international standards but is middling among other wealthy nations. Management can increase productivity by taking the actions like; management technique, communication and promoting group activity, work culture and motivation. It is difficult to find out the exact number of productive man-hours. This is because wages paid to the employees also includes the cost of idle time. It is very difficult to measure the productivity of service sectors e.g. banking, insurance, education, etc.
The quality what is the ratio of output to input of a computer may be defined by how well it works and how long it lasts. Quality may also be measured by how easy the computer is to use or by how quickly the manufacturer repairs a computer that experiences problems. All of these characteristics can affect customer satisfaction and therefore should be considered as indicators of quality. If a firm plans to sell its product in a specific location, it may establish its plant there. The costs of transporting and servicing the product can be minimized by producing at a site near the source of demand.
A specific part of the production process is completed at each work station. Inventory control is the process of managing inventory at a level that minimizes costs. It requires the management of materials inventories, work-in-process inventories, and finished goods inventories. (viii) Higher productivity means better utilization of the country’s resources, which helps to control inflation in the country.
