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Emerging Costing Approaches Part 2 (Cont )

The document discusses different types of productivity - labour productivity, material productivity, machine productivity, and overall productivity. It defines formulas to calculate each type. Labour productivity is measured by output per labour hour or sales value divided by number of workers. Material productivity is measured by material cost divided by units produced or waste divided by total material used. Machine productivity is measured by output divided by machine hours or actual hours divided by planned hours. Overall productivity can be measured by output divided by inputs or profit divided by capital employed. The document also discusses misconceptions about productivity and ways for management to improve productivity, such as incentives, health and safety measures, training, and efficient material handling.

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LAKSHMANAN MP
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1K views3 pages

Emerging Costing Approaches Part 2 (Cont )

The document discusses different types of productivity - labour productivity, material productivity, machine productivity, and overall productivity. It defines formulas to calculate each type. Labour productivity is measured by output per labour hour or sales value divided by number of workers. Material productivity is measured by material cost divided by units produced or waste divided by total material used. Machine productivity is measured by output divided by machine hours or actual hours divided by planned hours. Overall productivity can be measured by output divided by inputs or profit divided by capital employed. The document also discusses misconceptions about productivity and ways for management to improve productivity, such as incentives, health and safety measures, training, and efficient material handling.

Uploaded by

LAKSHMANAN MP
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Emerging costing approaches​ ​(cont… )

Ok latest discuss about the factorial productivity. The factory productivity of individual factors
which contribute to the overall productivity in this case the first one is
I. ​labour productivity.
​Labour productivity is measuring the efficiency of labour. The labour productivity is measured in
two terms that is in the terms of hours and in terms of money.

The basic formula is is" men hour per unit of production equal to total labour hours divided by
total output." Or labour productivity = total output /
total men hours
2. In terms of money
Labour productivity= Sales value of Cost of output / ( divided by) number of workers.

II. Material productivity. Here measuring the efficiency of usage of material in production. The
formula is.
material cost material cost divided by number of unit produced
or direct material cost divided by production cost or
direct material cost divided by sales

or waste or scrap divided by total material consumed X 100.

III. Machine productivity.

Here the examination of how the machine utilised for production. How the machine utilised for
optimal output.

Machine productivity= out put divided by actual machine hours.


Or
Activity percentage.
Actual machine hours divided by planet machine hours X 100.

*#* the overall productivity


1.Cost of output divided by cost of input.
2. Profit divided by capital employed.

IV.​ Productivity index

When the output in relation to the input is expressed mathematically become what is known as
productivity index

Productivity index= ​output


Input
___________________________________
Here, we discuss about the misconception of productivity in general terms. There are so many
misconcept behind the productivity here we discussing on it.
1. Taken Breaking Bad.
Actually the employees must take adequate break and rest during the production
otherwise the wastage for trap may increase therefore adequate rest is essential for
increasing productivity.
2. Sleep l e s s.
The continuous work of employees or over time may lead to irritations boredom and tired
to the Employees. Therefore the employee must take sleep at least 6 hours during the
production time.
3. Most work done under pressure.
The continuous work pressure May not good for product / productivity to The workers.
Give adequate pressure and direction for the production constant work result in health
and relationship problem so it must avoid high pressure in achieving the goal.
4. Multitasking will save time and will improve productivity.
This is one of the wrong notations employee give freedom themselves to do their work
as per the specification. giving extra work work load cannot improve the productivity it
make dalima to the Employees

So we can conclude in the misconception about the productivity is giving appropriate time to
sleep, low pressure, low multitasking. In addition to this to improve the productivity must
associated with their incentive scheme.

Improvement of productivity
To improve the productivity the management should take care on this following tip's.
1. Provision of incentives to workers that is, fair wages bonus allowance other perquisites
and participation in management job security appreciation reward and award etc
2. Provision of adequate health, safety and welfare measures, good working condition,
accident free zone, etc
3. Application of scientific management that is good management techniques and practices
included in work arrangement. Time and motion study utilisation of resources reduction
of wastage, training etc.
4. Application of simplification standardization and specification
5. Scientific selection and training of workers. The management must provide adequate
training procedure for workers and specify the job in clear.
6. The management must specify the cost of production quality of product procedure of
production control etc
7. The management conduct appropriate Industrial Research and experiments for new
method and technique for better production.
8. Proper plant layout for easy flow of production process and operation from one place to
other place.
9. Effective material handling and internal transport storage easy handling of material
material control issuance procedure accounting of material written off material etc help to
improve the production and productivity

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