Ineffective work content due to poor product design consists of bad product design, lack of standardisation, incorrect quality standards, and design demands the removal of excess material. Ineffective work content or ineffective time in that activity consists of work content due to poor design of a product, work content by ineffective method of manufacturing, work content due to shortcoming of the management, and work content due to ineffective workforce. Effective work content or effective time is the basic work content required to produce that product. Machine and labour productivity increase when organisations produce required/ more quantity with the existing resources.Īny job contains two components: effective work content and ineffective work content. The factories turned towards productivity to increase the profit margin and reduce the manufacturing cost. Because of inherent differences in the style and fabrics used, combined with numerous manufacturing processes, increasing requirements for quality, uniqueness, and individuality of garments, as well as the need to shorten manufacturing and delivery-time and reduce costs, manufacturing activities planning plays an essential part in achieving a position within market competitiveness. Today garment manufacturing organisations are under tremendous pressure to rapidly introduce new products as the product life cycle is becoming shorter. The productivity increase can carve a pathway for a better economy. The organisation can again reinvest the surplus capital to expand its business, thereby generating further employment and increasing employee wages, which improves their purchasing power. Lower per-unit cost means an increase in profit level. Productivity reduces the per unit manufacturing cost by effectively utilising all the resources and reducing waste.
Output increases while input stays the same.Output and input increases, but the increase in input is proportionally less than the increase in output.These five relationships can improve productivity: Productivity is a relative concept, meaning it cannot increase or decrease unless a comparison is made over time.
As a result of this confusion, people tend to believe that increased production means increased productivity. The most common mistake a company does is to use productivity synonyms to measure productivity, which refers to the amount of a product or services produced. It can be defined as growth in the net output due to changes in efficiency and technical changes. Most companies worry about efficiency rather than productivity.
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So, many productivity measures are available in an organisation, and people get confused about understanding how to measure the productivity of an organisation. For behavioural scientists, productivity will be in labour utilisation (man days), and for engineers, productivity will be in capacity utilisation, production per man-hour or manpower efficiency. For an accountant, productivity can be measured in financial ratios and budgetary variances. For an economist, productivity is the ratio of output to input. Different people view productivity differently. This indicates high productivity will be achieved when activities add more value to the produced products.įurthermore, the opposite of productivity is waste, which must be eliminated to improve productivity. On the other hand, productivity is linked to the creation of value. This means productivity will reduce if the resources are not utilised correctly. Productivity is directly connected to the use of available resources. International Labour Organization (ILO) defines productivity as the ratio between “output of work” to “input of resources”.
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