Productivity

PRODUCTIVITY

GROUP MEMBERS

NAMES :- ROLL NO. PRIYANKA GAIKWAD 11 SIDDHI JOSHI 12 JAY PAREKH 28 NILESH VAZIRANI 50 KIRAN ZORE 57

Introduction Productivity is the output of any production process, per unit

of input. To increase productivity means to produce more with less. In factories and corporations, productivity is a measure of the

ability to create goods and services from a given amount of labour, capital, materials, land, resources, knowledge, time or any combination of those.

Output per unit of input employed. Increase productivity on the part of capital and labour.

Measurement of productivityProductivity can be measured, The amount of output

per unit of input. In a factory, it might be measured based on the

number of hours it takes to produce a good.While in service industry, might be measured based

on the income generated by an employee divided by his/her salary.

Definition and Equation Productivity is the ratio of output and input in any organization.

Productivity = Output Input Output is in the form of product quantity and input is in the

form of resources. The resources are in the form of

• Land acquired• Salaries paid to employees• Amount paid to purchase material • Amount spent in infrastructure

ExamplesIn case A, 10 products are made by spending 1000 rupees and in case B, 15 products made by spending 2000 rupees. Productivity in case A = 10 / 1000 Productivity in case of B = 15 / 2000 In case B, it is an indication of reduced productivity.

Types Of Productivity

PRODUCTIVITY

Partial Total

Partial Productivity

• The resources of productivity when measured separately are called partial productivity.

• “Apple to Apple” comparison.

Partial productivity

output in a

given period

labor hours

used in period

Example….. # S.No. Input factor Rs .in millions

1. No. of employees 3000 numbers

2. Employee cost 4000

3. Capital employed 500

4. Energy consumed 400

5. Number of client dealt with 35 numbers

6. Number of new clients added 5 numbers

7. Number of computer used (material cost) 2000 numbers

8. Other expenditure 50

Output 10000

Total Productivity

• The method of calculating productivity considering all the resources is called total productivity.

• Innovated by David j. Sumanth. • It is systematic and qualitative approach to

compete in quality, price and Time.

Total productivity provides systematic framework and structure to an organization and increase profitability.

Total Productivity

Total Output

Total Input

PRODUCTIVITY & PRODUCTION The production is indicated by output quantity.

Productivity Benefits

Increase in income/profitability. Lowering running cost/operational costs. Maximising the use of all of the company’s resources such as

land, equipments/machineries, factory, workers, and etc. Gaining a greater share of the market. More cash flows mean more opportunity for the company to

expand and grow.

TQM- TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations.

TQM looks at the overall quality measures used by a company

BENEFITS OF TQM

Ability to be more competitive

Increased market share

Cost reduction

Increased flexibility and responsiveness

Simplified processes

Improved communications

Less frustration and more satisfaction among the work force

KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement. The KAIZEN business strategy involves everyone in an organization working together to make improvements 'without large capital investments'.

Poka Yoke

Poka Yoke, also called mistake proofing, is a simple method to prevent defects from occurring in your business processes.

Poka Yoke translates into English as to avoid (yokeru) errors (poka). The result is a business that wastes less energy, time and resources doing things wrong in the future.

Eg. Check list for important work or important documents

HOUSE KEEPING

It is a systematic approach for better workplace.

It assigns a place for everything and ensures everything in its place.

It follows certain principles like cleanliness, organization,discipline,orderliness.

SMED (SINGLE DIGIT MINUTE EXCHANGE)

“ REDUCE YOUR SETUP AND ADJUSTMENT TIME FROM HOURS TO MINUTES”

Single Minute Exchange of Dies (SMED) is the approach to reduce output and quality losses due to changeovers.

The method's strength is the systematic approach to analyse what is actually done and how time is spent during the changeover activity.

5’S The 5S Process, or simply "5S", is a structured program to

systematically achieve total organization, cleanliness, and standardization in the workplace.

Seiri• Tidiness• Throw away all rubbish and unrelated materials in the workplace

Seiton• Orderliness• Set everything in proper place for quick retrieval and storage

Seiso• Cleanliness • Clean the workplace; everyone should be a janitor

Seiketsu• Standardization• Standardize the way of maintaining cleanliness

Shitsuke• Discipline• Practice 'Five S' daily - make it a way of life; this also means

'commitment'

SIX SIGMA

Champions and Sponsors Master Black Belt Black Belt Green Belt Staffing Levels and Expected Returns

BPR- Business Process Reengineering

Business Process Reengineering is the analysis and design of workflows and processes within an organization. A business process is a set of logically related tasks performed to achieve a defined business outcome.

Constraints/problems in increasing productivity1. Government regulations • Various taxations-• environment laws2. Registrations & approvals –• Registrations• Licensing 3. Union rules• Trade unions play constructive role • Sometimes these rules are misused 4. Management limitations• Changing environment, • certain disasters – natural &

accidental, 5. Employee related issues• Human limitations• Unskilled employees• Employee attitudes

Case study 1. GACL ( Gujarat Alkalies & Chemical Ltd.)

improves productivity by reducing cost-• The company introduced an Australian device

called Surface Miner. (To reduce the noise and vibration that

occurred during the conventional drilling, blasting and crushing process)

• Use of larger pre-heater (increase production)

2.Wal mart improves its productivity by increasing efficiency –

• Use of Electronic Data Interchange,

Case study cont…

3.Google improves its productivity by motivating employees –

• Fringe benefits• Medical insurances • Body care services• Entertainment services• Household servicesEtc etc

Conclusion

• Various ways of improving productivity

• For a firm to survive & prosper, improving productivity is a must