Productivity is defined as output divided by input, in other words, the measure of the output versus the cost of the input(s). Output is the organization’s product or service. Inputs are the cost of producing or providing that product or service. The inputs generally are labor, materials, machinery, and so on. Therefore, productivity can be measured in terms of labor, or machinery, or materials, and so on.
Labor Productivity Measurements
Machine Productivity Measurements
Machine productivity is measured as
Utilization x Efficiency
Utilization
Utilization is defined as “to make the most of”
Utilization is defined as “to make the most of”
% Utilization = Actual Run Time X 100 ÷ Available Run Time
A machine, like your car, is capable of running 24 hours a day 7 days a week. Theoretically, this is its available run time. This equates to 168 hours or 10,080 minutes of available running time each week. Cars cost a lot of money to buy and maintain and so the owner would like to get the most out of the machine for the money he/she put in to buy it and maintain it. So, part of getting value for money is to make the best use of the car. Taxicabs are the best utilized cars on the road. Normally, after a 12 hour shift, one cabby sub-rents his/her cab to another driver, who runs the car for another 12 hours.
So all machines can be monitored to see how much usage they are getting by using a utilization percentage.
This is only half the story about getting the best out of machines though. A car that is driven 24 hours in a day will have high (100%) utilization. If, however, the petrol consumption is only 5 liter a mile, when manufacturers manual states it should be 50 liters per mile then the car’s efficiency is low.
Efficiency
Efficiency is defined as economy, functioning, or producing effectively with the least waste of effort.
So all machines can be monitored to see how much usage they are getting by using a utilization percentage.
This is only half the story about getting the best out of machines though. A car that is driven 24 hours in a day will have high (100%) utilization. If, however, the petrol consumption is only 5 liter a mile, when manufacturers manual states it should be 50 liters per mile then the car’s efficiency is low.
Efficiency
Efficiency is defined as economy, functioning, or producing effectively with the least waste of effort.
% Efficiency = Actual Output Rate X 100 ÷ Maximum Rated Capacity
The maximum rated capacity is the speed or rate of output that the manufacturer of the machine says it should run at. This figure is found in the machine’s instruction manual. This may not be held in the area. The maintenance department may hold it as reference manual.
Material Usage Measurement, or Yield
Material usage measurement, or Yield is mesured as
Total Amount of Raw Material (in weight) X 100 ÷ Total Amount of Finished Goods (in weight)
Often, the production process will involve a certain amount of raw material loss. This should always be measured, as it is often the first indicator of something going wrong. For example, a reduction in yield could mean machines set at too high temperature.