Productivity and productivity measurement
Productivity is a measure of production
In the sense of checking and measuring production
Was the production proceeding according to the plan and in an ideal way, were profits achieved, costs were reduced, and customers were satisfied?
Is the work progressing better and the workers in job satisfaction and in a better condition?
Have the products been sold and positioned in the market?
Or is there a loss, defects, and pressure on the workers?
There are stacked products
There are glitches and stops
There is negligence, indulgence and absenteeism from some workers
Example
A factory that produces 10,000 products every week, and the profits for the week were $5,000
Another factory produces the same product with the same number and the same period, but the profits are 4000 dollars
The productivity of the first factory is greater because we have earned 5000
The other one is $1,000 less
What is the reason for the decrease in profits in the other factory?
It is caused by low productivity
This means that the lack of profits could be due to
Not selling some products due to the appearance of some defects
The lack of qualification and training of workers and therefore errors occurred
Poor marketing and sales plan
Poor quality
The meaning of productivity
An indicator showing the ratio of output to input
Productivity means reducing costs while maintaining quality
Productivity means measuring efficiency at work
Productivity means achieving profits, employee satisfaction and quality
Productivity measurement
Productivity is measured to know its level, whether it is high or low, and defects and errors are detected
Productivity is measured by measuring the productivity of the elements of the production system
workers, equipment, materials and manufacturing processes
Measuring productivity means taking data on each process whose production is to be measured and then analyzing and finding results
If productivity is low
The causes are searched for and treated, and any problems that led to a decrease in productivity are resolved
Measure productivity as a percentage
The output is divided by the input to find the percentage indicator of productivity
For example, the actual production over the planned production to find the ratio
Ending stock over the beginning stock
Actual sales over planned sales
Measure productivity as a numerical value
The actual production is divided by the number of workers, profits, or something else
To evaluate and take a picture of the production process
Examples
The amount of production over the profits
The amount of production divided by the number of workers
Productivity of workers and machines
What is the quantity of products produced by the machine compared to the production plan for the plan?
Worker productivity means the quantity produced during work compared to the plan
We assume that the working hours per day are 8 hours, and the machine produces 100 products per hour
At the end of the shift, the production was 750 products
productivity 93%
Another machine produced 100 products per hour, but at the end of the shift, the number of products was 600 products
productivity 75%
Because either the machine stopped or malfunctioned for some time
Or due to a decrease in the worker’s performance from normal and standard performance
Material productivity
Quantity of finished products in relation to raw materials
For example, we have a ton of raw materials and we want to get a thousand ready-made products from it
But we got 950 products
Here, the material yield is 95%.
