Generally speaking, productivity is the ratio of output and input. The output can be a product or service as the result of the process. And the input is the any resources required by the proses to produce the output.
To make the concept clear, let’s take an example. Let say you employ 1 worker to produce 1 kg of product per hour, then we can say the productivity is 1 kg per man hour. Now you change the machine that enable the same process, same worker produce 2 kg of product per hour, then the productivity become 2 kg per man hour. Or perhaps, you still use same machine but you give your worker proper training, and after some times, your worker able to produce 2 kg of product per hour using same machineries, then we can say, your productivity improve 2 kg of product per man hour.
To make the concept clear, let’s take an example. Let say you employ 1 worker to produce 1 kg of product per hour, then we can say the productivity is 1 kg per man hour. Now you change the machine that enable the same process, same worker produce 2 kg of product per hour, then the productivity become 2 kg per man hour. Or perhaps, you still use same machine but you give your worker proper training, and after some times, your worker able to produce 2 kg of product per hour using same machineries, then we can say, your productivity improve 2 kg of product per man hour.
Another interesting example, let say your company produce product A with a productive ratio 1 pcs per manhour. And your competitor produce product B with a productivity ratio 1 pcs per manhour, exactly as same as you but with less quality level. Whose company more productive? In terms of those productivity indicator, we can say that your company has same level of productivity. However, when we measure with other indicator, sales volume for instances, because your company’s product has higher quality level that appreciated by the market that indicated as a bigger sales volume than your competitor, then we can say your company has more productive than your competitor in terms of dollar sales per manhour.
As you can see from the ilustration above, many ways we can use to improve the productivity. However, generally, most of productivity specialist like me will work on reducing obstacles within process in order to improve the output. Or we can say we use same level of resources to produce more output. Another way, by improving the process we use less resources in producing same level of output. However, if you can do effective improvement within the process, you should produce more output with less resources. In this way, your organization can avoid new investment on some facilities that required large amount of money. On the other words, based on my 15 years experience in operation management, you do not always need more money and investment to get your organization more productive.
The question now, can we utilize the concept of productivity in our daily life? What do you think?
I will say we can. As far as we can have some measurable indicators, we can measure our productivity. For instances, every Sunday morning, I go swimming. First time, I can reach 20 times 24 meter long in 2 hours. In this case, my productivity is 240 meter per hour. Currently, I can reach 30 times 24 meter long in 1 hour, i.e. 720 meter per hour, then I would say I become more productive in swimming.
The question now, can we utilize the concept of productivity in our daily life? What do you think?
I will say we can. As far as we can have some measurable indicators, we can measure our productivity. For instances, every Sunday morning, I go swimming. First time, I can reach 20 times 24 meter long in 2 hours. In this case, my productivity is 240 meter per hour. Currently, I can reach 30 times 24 meter long in 1 hour, i.e. 720 meter per hour, then I would say I become more productive in swimming.