Productivity

Productivity is one of the most popular word used in the manufacturing or business or competitive world. People who are cost conscious often use this word.

Confused?…

I will clear the confusion.

What is productivity?

Productivity can be defined in following way…

Productivity is a measure of how much output is produced per unit input.

Unit of productivity?

Unit of output of a particular process, is the unit of productivity.

Formula for productivity

Productivity = Output / Input

Productivity example

There was a machine which produces plastic bottles. This machine presently requires 3 people to operate the machine and it produces 300 bottles per hour. Its energy consumption is 5 unit per hour and consumes 15 kg of raw material.

One day general manager came to the shop floor and asked, ‘what is the productivity of this machine?’ to the industrial engineer.

Then he answered, this machines productivity is 100 bottles per one manpower, 60 bottles per one unit of power and 20 bottles per kg of raw material.