The efficiency with which resources are utilized is called productive efficiency. Higher productivity means producing more from a given amount of inputs or producing a given amount with lesser inputs. Higher productivity provides several benefits to management, employee as well as to customer and other stakeholder related to a firm. The measure of productivity is defined as a total output per one unit of total input. High productivity can lead to greater profits for businesses and greater income for individuals but there are some constraints are faced by an industrial manager in measuring productivity.
OEE Analysis: 40 Most Frequently Asked Questions (FAQs) on Overall Equipment Effectiveness
Continuing research and development (R & D) leads to the discovery of better techniques of production and improvements in existing machinery, equipment, etc. The rate of technological progress is a direct determinant of productivity. That is why companies and countries spend huge sums of money on research and development activities.
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Introduced in India by BHEL in 1981, the movement has now spread to about 250 to 350 establishments. Nearly 7,000 quality circles involving 70,000 workers are in operation. Companies like BHEL, HMT, Modi Rubber, J.K. Synthetics, etc., have successfully implemented this concept. A Facilitator makes integration of programme easier at all levels. The Coordinator supervises the facilitators and directs administration of the programme. There is a Steering Committee which oversees and directs the efforts of all quality circles in the organization.
How Input-output Ratio of Materials Can be Used as Performance Measure
It helps in developing mutual understanding and cooperation between management and labour. Joint consultation, suggestion schemes, two-way communication, grievance procedure are the main forms of workers’ participation in what is the ratio of output to input management. Employees use buildings, machinery, and equipment to convert materials into a product or service.
For instance, high-tech companies tend to locate near universities where there is an abundance of educated labor. Some local governments may be willing to grant tax credits to attract companies to their area. The governments offer this incentive to increase the employment level and improve economic conditions in the area. The cost of hiring employees varies significantly among locations.
Comparing the actual ratio with the standard ratio, the real performance can be judged. If the,actual ratio is higher, the performance is below standard, whereas if the actual ratio is lower than the standard, the performance is better than the standard. The input/output frequency ratio of a PLL is set by frequency dividers in the reference and feedback paths. Increased profitability as high productivity leads reduces cost of production. When a firm is highly productive it becomes successful eventually, and because of this, incentives are bound to be made available to the employees. These include pay raises, bonuses, and medical insurance and so on.
When companies sell products across the nation, they may choose a site near their main source of transportation. They also need to be accessible so that materials can be delivered to them. Some factories and offices are established near interstate highways, rivers, or airports for this reason.
They are the product (or output) approach, the income approach, and the expenditure approach. Work culture is a combination of qualities in an organization and its employees that arise from what is generally regarded as appropriate ways to think and act. Work cultures that mix of practices and ideologies arising from the interactions of people with their work environments have been shaped in all by diversity. This method includes material planning and control (MPC), purchasing, logistics, material storage and retrieval, source selection and procurement of quality material, waste elimination. Misinterpreted as technical change or efficiency/effectiveness of labor.
- Acts as a good diagnostic measure to identify areas of improvement by evaluating inputs separately across the output.
- Total Productivity Model was developed by David J. Sumanth in 1979 considered five items as inputs.
- The concept of productivity can be applicable to any economy, small, medium and large business, government and individuals.
- Subordinate’s participation in setting goals and action plans and in reviewing performance provides a good measure of self-control.
This index measures the efficiency in the use of all the resources. Partial productivity Indices depends upon factors used; it measures the efficacy of individual factor of production. Following are productivity indices for individual inputs. Quality can be measured by assessing the various characteristics (such as how long the product lasts) that enhance customer satisfaction. Productivity is an economics term which refers to the ratio of product to what is required to produce the product.
QWL is a new technique for improving productivity and quality of work. This would indicate that the firm’s productivity had increased 10% of the productivity of the base period. (vi) Due to higher productivity, a firm can survive and grow better.
Productivity is the ratio between output of wealth and input of resources used in production processes. Output means the quantity of products produced and the inputs are the various resources used in the production. The resources used may be land, building, equipment, machinery, materials, labour etc.
The Commonly Used Hand Operated Material Handling Equipment
It can be observed that the voltage ratio is square root of the power ratio. This is because we have the same reference levels for both voltage and power. With the help of this ratio, actual working of an industry can be assessed easily. A standard ratio must be set under the circumstances prevailing in the organization.
Flexitime helps to reduce worker alienation and to raise productivity. It reduces the tyranny of supervisors and provides job opportunity to working mothers, aged persons and students. It has greater motivational value than five days’ work-week. By permitting workers the right of self-determination, flexitime reduces tardiness, overtime and short-term absenteeism.
There is a continuous change in the price of inputs and outputs, quality of raw-materials, machines and tools, quality of labor, etc. All this creates difficulties in measuring productivity. Job enrichment is the process of redesigning a job in order to enlarge its scope and to give the worker more to do. Its purpose is to improve job satisfaction, motivation and morale of workers.
