Module 5 - Productivity

By Mustafa Maldar,
Teaching Assistant,
KUD KIMS Dharwad.
Contents
• Meaning
• Factors affecting productivity
• Productivity improvement technique
• Technique of improving productivity
• Work study
• Time study
• Method study
Meaning
• Productivity is a continuous process.
• It is a measure of a business output
compared to its input.
• High productivity occurs when fewer
labor and material costs (input) are used
to produce more output while maintaining
quality.
• When the productivity of a company
increased, then it will help to fight
competition and create profits.
Meaning
• Productivity is based on two factors.
• One is workforce productivity that means the
total amount of output produced by the workers
in a certain period.
• The second is personal productivity means the
output of an individual in a certain period.
• If a company wants to improve workforce
productivity, then they have to increase
personal productivity also.
• Especially in the case of a leader , manager ,
person in charge that will assist lower staff.
Example
• A machine produces 500 units a day. The
finished price of each unit is Rs 80. It means the
output of the machines is RS 40,000 per day.
But the total cost to make a unit is Rs 20, which
comprises of Rs 8 for material, Rs 7 for labor,
Rs 5 for machine time.
• Output - Unit produced (500) * Price of each
unit (80) = R.s 40,000
• Input – Unit produced (500) * Cost of each unit
(20) = R.s 10,000
• Productivity = Output/Input = 40000/10000 = 4
Factor affecting productivity
• Manpower
• Technical factors
• Finance
• Time
• Location
• Lack of training
• Employee Satisfaction
• Government
Manpower
• Manpower is the key asset of any
organization, which helps to run the
operation of the company.
• Management has to put the right man in
the right place.
• Example – Team Leader will the team,
guide them, and monitor them to work as
per the set plan and goals. The physically
fit worker has to place on the machinery
for producing goods with smoothness.
Technical factors
• These are the most important because the
production process happens over it.
• These include layout and size of the
machinery, the correct design of machines
and equipment, research and
development , automation and
computerization etc.
• If the organization uses the latest
technology, then its productivity will
increase.
Finance
• Finance is like the pumping heart of the
organization.
• Finance work as the breath of the
organization.
• The organization breathes in the revenue
and any other income or breath out
expenses such as salaries, bills, loan
settlement, rent, etc
• Whether it is fixed or working capital, it
will lead to the survival chances of the
Time
• Time is money.
• Management should set a time frame
required to perform every activity.
• Example – Production time, Idle time,
inspection time, the time required for
repair and maintenance of machines etc.
• If an organization changes the time for an
activity, then it should be taken care that
other activities or quality of output do not
suffer.
Location
• The location of a business can impact
productivity.
• Factors such as law and order for
corporate, infrastructure facilities,
nearness to market, nearness to sources
of raw materials, climate, skilled
workforce etc.
• A near business location also makes it
convenient for the staff to travel easily.
Lack of Training
• A lack of staff training can turn down a
business back from success. There are
different activities taken place in a
company.
• So, every activity requires a different
individual or group of people.
• The amount of training needed will also
differ.
• Management should ensure that staff has
given proper training to be more
Employee Satisfaction
• If employee are not satisfied with their
work, then it affects productivity.
• They will not use their full potential to
perform the job.
• The reason behind employee
dissatisfaction can be mental or physical
pressure, workload, work environment,
underpaid, poor management, Limited
Career growth, Unsupportive Boss.
Government
• The government has made a number of
rules that the corporate world has to
follow.
• Some of these benefits the corporate
while some are not.
• But companies have to follow these rules
in any order.
• If companies fail to follow these norms,
the government can take strict action
against the management.
Techniques of Improving Productivity
• Human Relations
• Review your Workflow
• Material
• Process of production
• Technology
• Finance
Human Relations
• Friendly environment
• Increasing Labor participation
• Minimizing the conflicts
• Awarding Rewards
• Supportive leaders
Review your workflow
• Requirement of improvement
• Check that the plan is working properly, if
not take proper step to correct it.
Material
• Plan the requirement of material for the
production process.
• QC after purchase
• Proper space for storage capacity
Process of Production
• Decide whether the production process
done by machines or labor.
• Provide proper training or skills.
Technology
• Existing technology can met it production
capacity.
• If installed advanced technology will it
improve productivity or not.
• Remove waste elimination
Finance
• Proper cash management should be
maintained
• Required fixed or working capital to
continue its working without any issues
Productivity improvement technique

• Work study method –

Method study
 Work Measurement
• Time Study method
Need for the Work methods
Introduction
• Discover new work methods and
techniques which could help to produce
goods of required quality at reasonable
costs.
• Work simplification , job design , value
analysis etc . These are collectively called
“Methods engineering” or “industrial
engineering”.
Definition of work study
• Work study is defined as that body of
knowledge concerned with the analysis of
the work methods and the equipment
used in performing a job, design of an
optimum work method and
standardization of proposed work
methods.
Introduction of Work study
• The survival and growth of a manufacturing
organization depends on its productivity.
• It is the ability of the organization to
achieve the same or better output by using
the same amount of input.
• It provides a great advantage to the
organization as compared to its competitor.
• Advantages like less cost of production, less
price of the products, high profits, a better
image in the market etc.
Introduction of Work Study
• Work study helps the company to increase its
productivity.
• Work – study is a combination of tools and
techniques ( method study and work
measurement ) used to analyze that how work
will be executed.
• It ensures that all the factors of production
utilize in an effective manner.
• Work study deals with the human being and
their handling of other factors of production of
the company.
Introduction of Work Study
• Work – study involves analyzing and
evaluating the best method of doing the
work and develop a standard for
performing the job.
• It helps in diving the work into small parts
and then tries to complete the work in the
shortest time with maintaining the quality
of the product.
• It will increase the productivity of the
company
Objective of Work Study
• To analyze the present method of doing a
job for developing a new and better way.
• Optimum utilization of resources.
• Establishing a standard time for
performing the job.
• To increase productivity by ensuring the
best possible use of human, machine and
material resources.
• To achieve the best quality product and
service at the minimum possible cost.
Objective of Work Study
• Identification of wasteful activity.
• Creating coordination among different
factors of production.
• Smooth production process and enhance
job satisfaction of the workforce.
Steps involved in Work Study
Steps involved in Work Study
• Eight steps –
• Select the job or the process or the operation to
be studied.
• Record all relevant facts about the job or
process or operation with a suitable charting
technique such as operation process chart ,
flow process chart , flow diagram , SIMO chart.
• Examine critically all the recorded facts ,
questioning the purpose, place , sequence ,
person and the means of doing the job/
process/operation.
Steps involved in Work Study
• Develop the new method for the
job/process/operation.
• Measure the work content and establish the
standard time using an appropriate work –
measurement technique viz . Time study using
stop watch , synthesis methods , analytical
estimating methods ,pre- determined motion time
system and work sampling.
• Define the new method for the
job/process/operation.
• Install and Maintain new method for the
job/process/operation
Definition of Different Terms
Advantages of Work Study
• Increased productivity and operational
efficiency.
• Reduced manufacturing costs
• Better manpower planning
• Reduced material handling costs
• Provides a standard of performance to
measure the efficiency of work
• Provides better job satisfaction to employees
• Increase profit
• Improves the image of the organization
Techniques of Work – Study
• Method Study
• Work Measurement
Method Study Or Method
Analysis
• Work methods analysis method study is a
scientific technique of observing,
recording and critically examining the
present method of performing a task or
job or operation with the aim of improving
the present method and developing a new
and cheaper method.
Method Study
• Method study includes the study or critical
examination of the existing way of doing the
work.
• The reason behind this study is to find,
develop , and apply the easier and effective
method of doing the work.
• It helps in reducing cost and unnecessary
activity.
• In other words, it is a process of examining all
the activities to find a simple way of doing it.
Objectives and Advantages of
Method Study
Method Procedure
• Select
• Record
• Examine
• Develop
• Install
• Maintain
Work Measurement
• It involves methods and tools used to
analyze the time in which work is
executed.
• It includes examination and developing
the standard time in which the work will
get completed.
• Standard time is the time taken by the
well-trained workforce to produce one
unit.
Time Study
• Time study is concerned with the
determination of the amount of time
required to perform a unit of work.
• It consists of the process of observing and
recording the time required to perform
each element of an operation so as to
determine the reasonable time in which
the work should be completed.
Objective of Time Study
• Main objective “To determine by direct
observation, the quantity of human work
in a specified task and hence to establish
the standard time, within which an
average worker working at a normal pace
should complete the task using a specified
method.”
Objective of Time Study
• To furnish a basis of comparison for
determining operating effectiveness.
• To set labour standard for satisfactory
performance.
• To compare alternative methods in
method study in order to select the best
method.
• To determine standard costs.
• To determine equipment and labour
requirement.
Steps involved in Time study ( Stop
Watch)
• Select the job to be studied
• Select the worker to be studied
• Conducting stop watch time study