Production and Productivity

Production:

Production may simply be defined as the function of acquiring inputs and transforming them into outputs desired by customer.
Production is any process or procedure developed to transform a set of input materials like man, materials, machine, money, information and energy into a specified set of output elements like finished products and service in a proper quantity and quality, thus achieving the objectives of an enterprise.

Input to Output

Productivity:

Productivity can be defined as the ratio between output and input. The output means the amount produced or number of items produced and inputs are the various resources employed eg. Man, Machine, Materials, Power, Money, Times etc.
Productivity is a ratio to measure how well an organization converts input resources into goods & services.
Productivity is the relationship between OUTPUT and ALL THE INPUTS Utilize to produce the output-
Productivity = Output / Input

Importance of Productivity

• By Productivity we can understand how much we are producing per machine, labor etc.
• Productivity gives the idea of resource utilization (Input), which is not possible by production
• It is easy to compare different lines by productivity
• Productivity is a major factor for-

• Planning
• Factory Production Capacity
• CM Cost Calculation
• Production Forecast
• Financial Budget

Productivity Measures

Different types of productivity measures

• Single factor productivity
• Multi factor productivity
• Total factor productivity

Factor tending to reduce productivity

• Internal factor
• External factor

5 Ways technique to improve productivity:

5 Ways technique to improve productivity

Useful tools for productivity improvement:

Useful tools for productivity improvement