Tuesday 8 January 2019

The factors that influence productivity

In production management and operations, we often hear the term "Productivity". To measure the efficiency of a person, machine, factory or system in changing Input into Output. Is the INPUT in this Productivity can be resources used as capital, labor, material (Material) and energy while the OUTPUT can be either a number of units of product or revenue generate?. The measure of productivity usually expressed with a ratio that compares. The INPUT against OUTPUT between which are use in the production process or OUTPUT per unit of INPUT.

It may be argued that high Productivity is doing a job in the shortest time possible with the use of the resources as little as possible without sacrificing quality. For example, A Worker can produce 100 units of products in 1 hour while Workers B can produce 120 units of products in 1 hour is also using the same technology and materials. Then it can be said that workers are more productive than B Worker A or B higher worker productivity of Workers A. Productivity is not only use to measure employees' work efficiency, but also commonly use to assess the development of the country, economy, industry, business, industry even at our individual on its own.

Productivity is basically made up of two words, namely "Product" and "Activity".  Which means it is an activity to generate something, be it in the form of Products or service/service.

Understanding productivity according to experts

For more details regarding productivity, here are some definitions or notions of Productivity according to some experts:

Productivity is a concept that describes the relationship between the results (the amount of goods and services produce) with the source (the amount of labor, capital, land, energy, and etc.) to produce those results.

A productivity is the relationship between inputs and output-the output of a productive system. In theory, it is often easy to quantify this relationship as the ratio of output to input share. If more output is produce with the same amount of inputs, productivity goes up. Similarly, if fewer inputs are use for a number of similar output, productivity also rises.

The production or productivity is output generated in one unit of time for input.

Productivity is a concept that denotes the existence of a link between the work of the unit with the time it takes to produce a workforce.

The productivity as a result of the relationship between the real and physical (goods or services) with the actual input.

How to Calculate Productivity

Productivity Formula or equation

Based on the definition of the so-called defines-above, here is a simple formula of Productivity that is revealed by the comparison of the ratio between the Output against Input.

Productivity = Output/Input

Examples of cases the calculation of Productivity

A company using the 150kg plastic raw materials to produce the finished product as much as 100 kg in the first month. In the second month. The company consumes the same amount of raw material that is 150kg but a finished product that can be remembered for a lot more of that is as much as 145kg. Calculate Productivity month first and second months of the company.

First Month:

Productivity = Output/Input
120/150 = Productivity
Productivity = 0.8 or 80%

Second month:

Productivity = Output/Input
= 145/150 Productivity
Productivity = 0.96 or 96.67%

From simple examples about the productivity calculations, we can see that the productivity of the company was increased from 80% to 96.67%. Using the same resources (inputs) to produce a number of products so that more (OUTPUT).

Factors that affect Productivity

The following are some of the factors that influence the productivity of an organization.

Technical factors

Technical factors are factors that include the determination of the location, layout and size of the plant or machine the right production. The use of machinery and equipment, research and development and technical application of computerization and automation of production are concern. If the company uses the latest technology with precision, so productivity will be higher.

Factors of production

Factors of production are factors that include planning, production and control of coordination, the use of good quality raw materials as well as the simplification and standardization of production processes. If all factors of production can go well then it will increase productivity.

Organizational Factors

Organizational factors are related to the types of organizations that use, defining clearly the authority and responsibilities of each individual and Department. As well as the Division of labor and a specialty against work done.

Personnel Factors

Factors of personnel is a factor that directly affects the productivity of an organization. The individual or the right workforce should be place in the right position. Labor that pass selection must be given proper training and development as well as provide the conditions and the working environment is good. Individuals who have been the employees must be motivate with good, both financially as well as non-financial motivation. Job security, the opportunity to give advice or opinions and opportunities for promote also directly affect the productivity of an organization.

Financial Factors (finance)

Finance is the blood of a business, therefore it must be the planning and financial control against financial or working capital. Use of capital or financial wastage should be avoid. Management must take into account with good returns on their invest capital. Financial manage properly will increase the productivity of an enterprise or organization.

Management Factors

A management that is scientific, professional, future-oriented, sincere and competent will positively affect. The productivity of the organization. Management that can optimize the use of resources available to get maximum results with the lowest cost. Using the latest production techniques, provide a good working environment and always motivate employees. It will be significantly increase the productivity of the organization.

The Government Factor

Regulations and Government policies such as the regulation of employment, fiscal policy. That includes interest rates and taxation would be very influential on the productivity of an organization. Management organizations that have knowledge of the rules and policies of the Government. As well as maintaining a good relationship with the Government will be able to increase the productivity of the organization.

Location Factors

The productivity of an organization's work also depends greatly on the location where the organization is locate. The location of which factors such as infrastructure facilities, proximity to market, proximity. To the source of raw materials, skill labor and others.

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