Material Productivity
Productivity refers to the relationship between the quantity produced & the quality of resources utilized. It is also known as ratio between the output and input.
Input = Output + Wastage
Dividing both the sides by input, we obtain
Input = Output + Wastage
Input Input Input
Or 1 = Productivity + Wastage
The above highlights that there are two broad approaches to increase productivity of any system:
Increasing the ratio of output to input and taking it as close to one as possible.
Decreasing the ratio of waste to input and making it as near to zero as possible.
Other various segments in which productivity can be looked are:
Productivity of Men or Labour
Productivity of Machines
Productivity of Materials
Productivity of Methods and Procedures
Productivity of Capital
Productivity of communication and information
Productivity of energy in all forms
Figure illustrating various areas of Productivity
Characteristics of Productivity:
1. Productivity relates input to the output.
2. Productivity refers to people and human efforts.
3. It is a measure of knowing that how efficiently organization has utilized its resources.
4. It also relates with the quality of output.
5. It is viewed from different prospective i.e. Productivity of Nation, Industry, Enterprise
Measurement of productivity:
1. Overall Productivity: It is also known as Total Productivity Index. TPI is equal to total value output over total value input.
2. Factor Productivity: It is helpful in identifying in depth the causes of low productivity
3. Material Productivity: It is the process of converting raw material into output some loss of material is done. Material yield is the measure of these losses.
Material Productivity = Total output x 100
Quantity of Material used
4. Labour Productivity : Productivity in terms of labour is generally measured by the output per man hour work.
Factors effecting Productivity : The...