Table of Contents
What is Production?
The basic concepts of production productivity help to measure the performance of the production unit. Production is related to productive work. Where this term refers to the production as well as service provided by the men or other sources consequently. It is mostly used in the production-related sector. Anyhow, it is very important to know the definition of production.
Production means to produce something by a process but on the other hand, production means the integrated effort of Land, Labor, Capital, and Organization. It is very important to measure the production of an industry or an organization. If we know, how to calculate productivity then it will be easy to increase productivity. As a result, Organization will be benefited. In this article, I will emphasize production as well as productivity. After that, I will show, how to calculate productivity.
What is Productivity?
Productivity is the ratio between output products and input resources in the production process. Basically, it indicates how well the resources are utilized to get an output of the production process. Productivity is very important to compare the two different production units. Here, by measuring productivity, we can determine the progress or decrees of a company related to production. This process also shows how to measure production efficiency. Followings are the definition of productivity. They are-
- Firstly, Productivity is the ratio between output and input.
- Secondly, Productivity is concerned with the efficient utilization of resources (Input) in producing goods and services (Output). We can measure productivity as follow:
- If, Productivity = P
- Output = O
- And Input = I
- According to Productivity Definition
- Productivity, P = O/I
From the above formula, we can calculate the productivity of a production unit. However, different factors should take into consideration which make impact productivity such as humans, technology, managerial, natural, political, sociological, and others. The management should consider all factors which give the best productivity performance in the production process. The success of a production unit depends on the highest measurement of productivity. All input resources involved with the production should be accurate and should utilize efficiently in an effective way.
Basic Concept of Production Productivity
Basic concepts of production productivity are important for production-related people. Clear and Basic concepts of production and productivity are essential. Productivity is an important term in the new day. Although everyone tries to improve their productivity by utilizing their limited resources. Anyhow, If one can find out the obstacles in the path of improvement then he or she can take the necessary steps to remove that are obstacles. Here, I will compare two production units for giving a clear concept of productivity. By the following measuring system, we can calculate production productivity.
Production Unit 01
- Production = 10,000 units.
- Employment = 50 no
- Hours = 8 hours per day
- Days = 25 days
- So, Production P =10,000/ (50*8*25) = 1 unit
Production Unit 02
- Production = 12,000 units.
- Employment = 60 no
- Hours = 8 hours per day
- Days = 25 days
- So, Production P =12,000/ (60*8*25) = 1 unit
From the above, I have taken two changes in the two production units; they are production and men’s power. In both stages, I did not change the total hour or days. So, it’s your time to calculate the productivity in your industry. However, now we can make a difference between production and productivity in a manufacturing unit.
So, If we can change the productivity ratio upward then it will sure to get successful. Finally, remember it, today is better than yesterday and tomorrow will be better than today. Best of luck.
18 thoughts on “Basic Concepts Of Production Productivity”
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