TYPES OF PRODUCTIVITY AND ITS COMPARISON WITH PRODUCTION

Production and productivity are similar but there is a vast difference between them. Exactly said, production is the conversion of input into the output where as productivity is the ratio between output and input. It shows the functional relationship between final products and their ingredients.
Productivity =output/input

                                                                                                             
Productivity is a measure of output from a production process, per unit of input. For example, labor productivity is typically measured as a ratio of output per labor, an input. Productivity may be conceived of as a metric of the technical or engineering efficiency of production. If productivity is greater than unit (1), then it shows that the organization greater output in comparison of inputs.
Example: Let X Company produces 1,00,000 units of outputs with the help of 25,000 units of inputs. Then its productivity will be:
            
Productivity =output/input  = 4:1


It means X co. can produce 4 units of outputs from 1 unit of input.


Difference between production and Productivity

S.N.
Base           
Production
Productivity
1
Meaning
It is the conversion of input into output
It is the functional relationship between input and output
2
Measurement
It is measured in terms of qualitative units like unit, kg, liter, miter etc.
It is measured in terms of ratio like 4:1 or times.
3
Utility
Production can directly satisfy the human needs.
Productivity is only the indicator of production which is not for human satisfaction.
4
Increment
Increment in production may not increase in productivity.
Increase in productivity will surely increase production in long run.
5
Shape & Existence
It has physical shape & existence (excluding service goods)
It has not physical shape & existence
6
Profit
If production is increased, then profit will also be increased.
If productivity is increased then may or may not increase profit in short run but ensure higher profit in long run.


There are three types of productivity. They are as follows:
                           i.          Partial productivity
                         ii.          Total factor productivity
                       iii.          Total productivity

i.          Partial Productivity
If we are concerned with the ratio of output to a single input then it is called partial measures of productivity. It is the ratio of output to partial input. It measures the productivity of each input. It determines the contribution of each factor in producing and generating output. It can be measured as follows:

Partial productivity can be expressed as:

  • Material Productivity: It is a ratio of output to materials input. 

  • Labor Productivity:  It refers the ratio of output to labor input. 

  • Capital Productivity: It is the ratio of output to capital input. 

  • Energy Productivity: It is the ratio of output to the energy. 

  • Other Expense Productivity: It is the ratio of output to other expense input. 
Hence, productivity is a tool of measurement that determines the efficiency of the organization in terms of the ratio of output produced with respect to inputs used. Various factors like technology, plant layouts, equipment, and machinery affect productivity. Hence, operations managers need to carry out a regular review of all these factors to maintain as well as improve productivity. 

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