Productivity Management
-
Upload
paramjit-sharma -
Category
Documents
-
view
2.837 -
download
15
Transcript of Productivity Management
![Page 2: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/2.jpg)
Productivity is defined as the ratio of output to input
![Page 3: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/3.jpg)
Output value if goods/services
Input cost of resources consumed==Productivity
Resources/Inputs
Materials,Capital,Labour/ManpowerTechnologyinformation
Performance
![Page 4: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/4.jpg)
Productivity Index
Output Performance Achievement Effectiveness Input Resources Consumed Efficiency
= =
Productivity is the ratio of output of wealth Produced to the inputs of resources
![Page 5: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/5.jpg)
Increase in productivity could indicates:
Increase in Production Volume over a given Period
Produce the same volume in lesser time
Produce the same volume with lesser input in a given time
![Page 6: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/6.jpg)
Productivity ----misconceptions
Not a measure of Volume of Production (Relationship of input-output)
Not a measure of Profitability (Reflect lower cost and high profit)
Not an anti inflationary measure(Increase in inputs not matched by outputs)
Not a technique to make worker to work Harder(Approach that encourages workers to work shorter)
![Page 7: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/7.jpg)
Productivity- measurement
Input variables
Payroll CostsEmployment CostsNo. of ManpowerNo. of Hours WorkedTime taken….
Output variables
Units producedProducts soldTasks completedRevenue obtainedValue addedStandard reached…
![Page 8: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/8.jpg)
Output Ratios
Trading Profit Number of Employees
=Profit perEmployee
= =Sales perEmployee
Sales Number of Employees
=Sales perEmployee
Units Produced or Processed Number of Employees
=OutputEmployee
![Page 9: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/9.jpg)
Cost Ratios
Wages CostUnits Produced
= =Sales perEmployee
Sales TurnoverEmployment Cost
Actual Labour Cost per standard HourTarget Cost Per standard hour
![Page 10: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/10.jpg)
Performance Ratios
St. Hours for ProductionActual Hrs Worked
= =Actual PerformanceTarget Performance
![Page 11: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/11.jpg)
Total Productivity Index
Products+ Services Labour+ Materials+ Energy+ CapitalTPI =
![Page 12: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/12.jpg)
Productivity of Labour
LP is defined as total out put divided by number of man hours Worked by all employees
![Page 13: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/13.jpg)
Measuring Labour Productivity
Quantitative Statements
Historical Costs
Variance Statements under Budgetary Control
Variance Statements under Standard Costing
![Page 14: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/14.jpg)
Influencing Labour Productivity
Where labour has no control
Material SuppliesReliability of DesignProduction MethodsProduct VarietyReliability of plant electricity water other services
New Labour…
![Page 15: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/15.jpg)
Influencing Labour Productivity
Where labour has full control
Starting timeStoppage timeLunch breaksScraps due to
Carelessness
Accidents due to…Absenteeism
![Page 16: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/16.jpg)
Productivity of Materials
Higher yieldLow CostHigher ValueLow WasteLow ScrapsLow rejectionsSubstitution of Materials
![Page 17: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/17.jpg)
Manpower & Productivity
Recruitment PolicySkill LevelKnowledge LevelBehaviourTrainingMotivationTechnologyChange Management
![Page 18: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/18.jpg)
Productivity & Profitability
Productivity means the Rate of production measured in terms labour, materials or machines
Profitability means the rate of profit earned measured in termsCapital employed
![Page 19: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/19.jpg)
Productivity & Quality
"Fitness for use“ Fitness is defined by the customer.
"Conformance to requirements".
Productivity & Quality go hand in handa Quality defect can neutralize
productivity
![Page 20: Productivity Management](https://reader034.fdocuments.in/reader034/viewer/2022050623/55294e9c4a7959c7158b4671/html5/thumbnails/20.jpg)
Productivity &Cost Effectiveness
Reducing the value of input through eliminating wasteIncreasing quantity or quality or both of the outputModifying system to get large ratio between input/outputEfficient utilization of men, materials and technologyEnergy ConservationUsing techniques like
Value Engineering Six Sigma Kaizen Operation Research Network analysis…..