This document discusses measuring productivity versus performance and efficiency. It provides examples to distinguish productivity from performance indexes. Productivity considers both outputs and inputs, while performance only considers outputs. The document also outlines factors that affect productivity like resources, technology, and work methods. Finally, it discusses traditional and newer approaches to measuring productivity like Kurosawa's structural approach and Gold's approach focusing on returns.
This document discusses measuring productivity versus performance and efficiency. It provides examples to distinguish productivity from performance indexes. Productivity considers both outputs and inputs, while performance only considers outputs. The document also outlines factors that affect productivity like resources, technology, and work methods. Finally, it discusses traditional and newer approaches to measuring productivity like Kurosawa's structural approach and Gold's approach focusing on returns.
This document discusses measuring productivity versus performance and efficiency. It provides examples to distinguish productivity from performance indexes. Productivity considers both outputs and inputs, while performance only considers outputs. The document also outlines factors that affect productivity like resources, technology, and work methods. Finally, it discusses traditional and newer approaches to measuring productivity like Kurosawa's structural approach and Gold's approach focusing on returns.
This document discusses measuring productivity versus performance and efficiency. It provides examples to distinguish productivity from performance indexes. Productivity considers both outputs and inputs, while performance only considers outputs. The document also outlines factors that affect productivity like resources, technology, and work methods. Finally, it discusses traditional and newer approaches to measuring productivity like Kurosawa's structural approach and Gold's approach focusing on returns.
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Lesson 03
Work System Design
Measurement of Productivity
Dr. Inderdeep Singh
Department of Mechanical and Industrial Engineering
1 Is Productivity Different from Performance?
Productivity Performance
Output in relation to input Considers output alone
Actual work done Productivity = Performance index = expected∨standard work
https://www.slideshare.net/samirpotale/ Is Productivity Different from Performance? Example:
It takes 3 meters cloth to make a coat. In a day a person is expected to make 50 coats. He makes 40 coats.
Q. What is his Performance ?
Ans: 40 coats
Q.What is his Performance Index ?
Ans : (40/50) x 100 = 80%
https://www.slideshare.net/samirpotale/ Efficiency Vs Productivity Efficiency Productivity • It is the ability to do • It is the rate at which goods something or produce are produced or the work is something without wasting completed. materials, time or energy. • It is the measure of output • It is the measure of waste in produced by one unit of a system. input. • It depends on the quality. • It depends on production.
4 Why Productivity is Important?
Higher standard of living
Higher GDP per capita
Higher Higher Productivity Investment Source: Lecture of T.M.JAYASEKERA , Managing Director -Innovative Skills (Pvt.) Ltd Benefits of Increased Productivity
To workers To the organisation To the nation To consumers and society in general
6 Factors Affecting Productivity
Controllable or Uncontrollable or internal factors external factors
Plant and equipment: availability and
Natural resources reduction of idle time Government and Technology: Automation infrastructure
Work methods : improvement in the
way of doing things Source: Industrial Engineering and Production Management by M. Telsang, S. Chand Publication Measurement of Productivity
Though productivity is an important factor leading to
success of all organizations but the productivity measurement is difficult from practitioner’s point of view.
There are number of reasons that make the accurate
measurement of productivity difficult. Criteria for Measurement of Productivity The measures should accurately reveal actual change in productivity.
Input and output must be considered in totality.
Productivity of all activities must be measured individually
Productivity data must be made available for managerial action.
9 Objectives of Productivity Measurement To compare an organization with its competitors in the market
To find out the relative performance of different employees,
units and departments
To compare relative benefits of different types of input according
to their output
10 Approaches in Productivity Measurement
• Traditional approaches • The Kurosawa structural approach • Lawlor’s approach • Gold’s approach
11 Traditional Approaches Traditional methods: Based on quantitative operational information, but in some cases, the traditional methods may not be suitable and efficient.
An alternative approach for the traditional methods is
subjective productivity measurement, which is based on employee’s subjective assessments.
12 Kurosawa Structural Approach This approach states that productivity measurement enables to analyze the past state of the company and, to plan new operations. For the application point of view, this approach can be applied to establish an information system for monitoring operational activities of the company. Therefore, it is necessary to build the productivity measurement systems according to the decision-making hierarchy of the company. 13 Lawlor’s Approach In accordance with this approach, productivity is a measure of how efficiently and effectively organizations carry out the five goals: Objectives Efficiency Effectiveness Comparability Progressive trends.
14 Gold’s Approach This approach emphasizes on the rate of return, and attributes profit to five major elements of performance which are:
Price of the product
Unit cost of the product Utilization of facilities available within the organization Productivity of these facilities Allocation of capital resources of the organization between fixed and working capital 15 Productivity Measurement Problems 1.Technical Productivity Measurement Problems
Different people such as suppliers, customers, users, sellers,
vendors, etc. use different sets of productivity measurements to gauge the productivity of an organization.
Hence there is no single universal measure of productivity
