Unit Title – Productivity Development

Group 1 - Arshad
Chryshanthi
Deshan
 Productivity
Definition:
“A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into
useful outputs.”

Productivity is computed by dividing average output per period by the total costs incurred
or resources (capital, energy, material, personnel) consumed in that period. Productivity is
a critical determinant of cost efficiency.

Formula:
Productivity = Output
Input
 Profitability
Definition:
“Profitability is a ability of a company to use its resources to generate revenue in excess of its
expenses in other words this is a company’s capability of generating profits from operations.”

Sustainability
Definition:
“Is the management and coordination of environmental, social and financial demands and concerns
to ensure responsible, ethical and ongoing success.”

Provide examples of profitability and

sustainability ratios and discuss ways and means
of improving productivity
 Productivity Improvement
There are four formulas that are used in the productivity development of a business. They are as follow ;

 Increasing total output without changing the total input. How do we select which formula is most suited
for a business. Take a few productivity ratios and
 Decreasing total input without changing total output.
discuss how we will improve
 Increasing total output and decreasing total input.
 Increasing total input while increasing the total output relatively at a higher rate to that of an increasing total
input rate.

Methodology
Productivity of Man Man Hour
(refers to the labour of one man working for an hour)

Productivity of Machine Machine Hour

(Is the running of a machine for an hour)
 Composition of Time for a Job
Total Work
Content
Take each of the boxes and Job
discuss what management can do Composition
to reduce and/or minimise in- Ineffective
effective time and excess work
content
Time

Basic Work Natural

Total Work Content
Ineffective
Management
Content Time
Excess Work
Content Worker