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What is productivity? How to measure and calculate it?

What is productivity? How to measure and calculate it?
In general terms productivity can be defined as the relationship between outputs and inputs.
In which sectors can be applied the definition of productivity?
This definition of productivity is generic and applies in an enterprise, a sector of economic activity or the economy as a whole. Productivity can be used to asses or measure how much output can be extracted from a given input.
What is the mathematical representation of productivity?
Mathematically productivity may be expressed by.

Example of how to calculate productivity

A textile factory works eight hours per day manufacturing 100.000 pants and 50.000 sweaters a month using 110000 and 75000 square meters of polyester cloth, respectively. If the pants section of the factory has 50 workers and the sweaters section 75, we can calculate the productivity as follow:
Measure of materials productivity
According to the formula given before, the materials productivity may be measured as the relation between the quantity of finished products and the materials used in the process.
Therefore, the productivity for the pants and sweaters lines of the factory are:
Measure of labor productivity
The labor productivity may be measured as the relation between the quantity of finished products and the labor hours used in the process.
Therefore, the productivity for the pants and sweaters lines of the factory are:
The productivity of any factor of production or input, can be measured in the form we exemplify before.

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What is the importance of productivity and how to improve it

What is the importance of productivity and how to improve it
Creating goods and services in different areas requires that certain resources be transformed into these (raw materials, supplies, labor, etc.). The more efficiently the mentioned transformation happens, the more productive it will be.
In its most basic form, productivity can be understood as the proportion of outputs (goods and services) among the inputs (resources such as raw materials, inputs, labor, capital, etc.). Improving productivity it is of vital importance for any company.
Improving the ratio of outputs and inputs (productivity) will be one of the most important tasks (if not the most important) that industrial engineering and in general the directors of operations or production face in their daily work.
How to improve productivity?
Productivity improvement can be achieved in the following ways: either by reducing the inputs while the outputs are kept constant, by increasing the outputs while the inputs are kept constant, or by increasing the outputs and reducing the inputs at the same time. This implies an increase in productivity.
From the economic perspective, the inputs can be identified as land, labor, capital and management. These inputs are combined in a production system. Through management, the conversion of inputs into outputs can be achieved. The better the management the greater the productivity that can be achieved in a given production system.
The outputs resulting from a production process can be goods or services of various kinds (for example computers, calculators, cell phones, soft drinks, education, hotels, etc.). Production then can be viewed as all the goods and services produced. The fact of having a high production may originate from an increasing number of people working (which can lead to an increase in employment levels), however this situation does not necessarily imply that there is a high productivity.
Measuring productivity is a good way to assess a country’s ability to provide and improve the living standards of its inhabitants. The increase in productivity is closely linked with the improvement in productive capacity and therefore, in a macro context, it can lead to an improvement in the standard of living.
Without an increase in productivity, the increase in the benefits generated by the factors of production (labor, capital, land, technology, management) implies an increase in prices. Conversely, when productivity increases, prices tend to decrease since more is produced with the same amount of resources.

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