DEPARTMENT – MECHANICAL ENGINEERING
Bachelor of Engineering (Mechanical Engineering)
Subject Name – Industrial Engineering (21MET-467)
Prepared by:
Productivity DISCOVER . LEARN . EMPOWER
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UNIT-1
CHAPTER -2
LECTURE -7,8
ON
PRODUCTIVITY
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Productivity
INTRODUTION TO PRODUCTIVITY
Productivity and Work Study:
• productivity is nothing but the reduction in wastage of resources. The
resources may be men, machines, material, power, space, time etc.
• We have also seen from the definition of work study, that it reduces wastage
of time, effort, and increases the efficiency of man and machine. Thus the
work study techniques lead to increase the productivity.
• According to V.K.R. Menon, productivity implies development of an attitude
of mind and constant urge to find better, cheaper, easier, quicker and safer
means of doing a job, manufacturing a product and providing service.
• But we see that most of these objects can be achieved by different activities
of work study. To improve the economic position of our country in comparison
to other countries, we must improve our productivity and performance.
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CONTINUE…
• In recent years, there had been regular pay increases, but we have forgotten that without
improving the productivity, prices will be sky rocketing and we will lose competition in the
world market. To compensate for wage increase, we must increase the productivity.
• To fight against inflation, we must increase the productivity. The battle fields of this fight are
every place where resources (men, material, equipment, money, time, efforts etc.) are in
volved.
• The factory and the agriculture are most important places where we must emphasize for
productivity improvement. Other places like offices, hospitals, teaching institutions etc. also
need productivity improvement, if the society and the country is to move forward.
• Thus our aim must be to make people more productivity conscious, if we want to improve
their standard of living. Productivity holds the key to the prosperity of the individual, a com
pany and a nation.
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Continue…
Increase in productivity results in:
(1) Increase in production and hence higher
profits.
(2) Products produced will be cheaper.
(3) Higher wages and bonus can be allowed to
workers because of large profits.
(4) Improvement in living standard of workers. 6
Continue…..
Following are the lines of attack to improve the productivity:
1. Improve the basic process.
2. Provide more and improved physical means to motivate the
workers.
3. Simplify and improve the product and reduce the variety.
4. Improve the methods of operation.
5. Improve organization, production planning and control,
6. Improve manpower efficiency at all levels
.
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Productivity: Definition
Productivity is the relationship between the outputs generated
from a system and the inputs that are used to create those
outputs. Mathematically
O
P =
I
Systems Concept
inputs outputs
transformations Customers
Land Goods
people and
SYSTEM
capital services
facilities
equipment
tools O
energy I
materials
information productivity
Partial Productivity
Any product normally takes more than one resource.
Improvement in productivity generally means
reduction in sum total of all resources consumed for
each unit of output. But when consumption of only
one resource is taken to calculate the productivity, it is
called partial productivity.
Total factor productivity is calculated by considering
total output and total input simultaneously.
Productivity Improvement
Productivity Improvement (PI) is the result of
managing and intervening in transformation
or work processes.
PI will occur if:
O O O O O
I I I I I
Productivity improvement
Eliminate wasteful activities
Simplify the activities.
Improve the Process. Combine two or more activities
(But mind you, combine only human activities. Don’t try
to combine machine activities
Some Single Factor Measurements
• Labor Productivity
– Quantity (or value) of output / labor hrs
– Quantity (or value) of output / shift
• Machine Productivity
– Quantity (or value) of output / machine hrs
• Energy Productivity
– Quantity (or value of output) / kwh
• Capital Productivity
– Quantity (or value) of output / value of input
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Examples of Partial Productivity Measures
Labor Productivity Units of output per labor hour
Units of output per shift
Value-added per labor hour
Machine Productivity Units of output per machine hour
Value-added per machine hour
Capital Productivity Units of output per dollar input
Dollar value of output per dollar input
Energy Productivity Units of output per kilowatt-hour
Dollar value of output per kilowatt-hour
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• For the month of Feb, following were the statistics
• Total Production – 1,00,000 units
• (b) Raw Materials Consumed – 50,000 units
• (c) Labour Cost– Rs 25,000
• (d) Labour Hrs Consumed – 10000
• For the month of Mar, following were the statistics –
• (e) Total Production – 1,20,000 units
• (f) Materials Consumed – Rs 55,000
• (g) Labour Cost– Rs 35,000
• (h) Labour Hrs Consumed – 11000
What are the factors that affect
productivity?
Training Methods
Technology Management
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Factors Affecting Productivity
Standardization
Technology
Searching for lost or misplaced items
Scrap rates
Labor turnover, layoffs, new workers
Safety
Bottlenecks
Factors Affecting Productivity
Methods
Design of the workspace
Incentive plans that reward productivity
Capacity utilization
Location
Layout
Inventory
Scheduling
Factors Affecting Productivity
Equipment breakdowns
Part and material shortages
Inadequate investment in training & education of
the employees
Why Productivity Matters
High productivity is linked to higher standards of living
Higher productivity relative to the competition leads to
competitive advantage in the marketplace
Pricing and profit effects
FREQUENTLY ASKED QUESTIONS
• What is productivity?
• What are the various methods to improve productivity?
• How will you increase productivity with the use of workstudy?
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E-BOOKS
1. https://www.amazon.in/Industrial-Engineering-Production-Management-Martand/dp/9352533798
2. https://www.amazon.in/Industrial-Engineering-Management-Zindani-Kaushik/dp/9389633192
3. https://www.meripustak.com/Industrial-Engineering-189716
4. https://www.flipkart.com/industrial-engineering-management/p/itmee9crud4fr3q5
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VIDEO LINKS
1. https://www.youtube.com/watch?v=N3Xa93SpuNc
2. https://www.youtube.com/watch?v=MqOKkDQr0yc
3. https://www.youtube.com/watch?v=qIXUiSzhIVg
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THANK YOU
For queries
Email:
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