Productivity is defined as the ratio between the output volume generated to the input volume required. It is a quantitative relationship between what we produce and what we have spent to produce. It measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.

There are three basic types of productivity measurement techniques:

1. Partial productivity
2. Total factor productivity
3. Total productivity

Partial Productivity

The ratio of output generated to the single input factor is called partial productivity. The input factors can be labour, material, capital or overheads. The types of Partial Productivity are as follows:

1. Labour Productivity = Total Output / Labour Input

   Labour Productivity (in terms of hours) = Total quantity produced / Actual man hours required to produce that quantity

   Labour Productivity (in terms of money)= Total cost (or sales value) of output produced / Amount in terms of rupees spent on workers

   The productivity of labour can be increased by increasing efficiency of labour and reducing labour time.

2. Material Productivity = Total Output / Material Input

   Material Productivity= No of units produced / Total Material Cost

   Material productivity depends upon how material is effectively utilised in its conversion into finished product.

   Material productivity can be increased by using skilled workers, adequate machine tools, good design of product etc.

3. Capital Productivity= Total Output / Capital Input

   Capital Productivity= Total Output / Capital invested

   Capital productivity depends on how effectively assets are utilised. It is vital to carry out timely replacement of fixed assets. This helps increase productivity and decrease overall costs in the long run.

4. Machine Productivity= Total Output / Total machine hours

   Production system converts raw material into finished product through mechanical or chemical process with the help of machines and equipments. Machine productivity depends upon availability of raw material, power, skill of workers, machine layout etc.

Ways to Improve Productivity

1. JIDOKA

   Jidoka is a Toyota concept aimed at describing the man-machine interface such that people remain free to exercise judgment while machines serve their purpose. The jidoka system shows faith in the worker as a thinker and allows all workers the right to stop the line on which they are working. The jidoka way of working consists of following three principles- Do not make defects, Do not pass on defects, Do not accept defects.

2. Heijunka

Heijunka focuses on achieving consistent levels of production. It incorporates the principles of line balancing by attempting to equate workloads, leveling demand out by creating an inventory buffer and replenishing that buffer.

1. KAIZEN Techniques

The following techniques are a part of productivity improvement methods known as Kaizen or "Continuous Improvement" .

i. Five S's of Housekeeping

A structured approach to achieve clean and orderly work place by fixing place for everything. Five Ss is an abbreviation for the Japanese words:

Seiri- getting rid of unnecessary items

Seiton- Arranging items (materials, tools, gauges) systematically for easy retrievability.

Seiso- Keeping work place scrupulously clean.

Seiketsu - Scheduling regular cleaning and clearing out operations.

Shitsuke - Making all the above task meet agreed standards at agreed intervals.

ii. Muda Elimination

Muda means "Waste‟. Here Muda elimination implies an "on going‟ and systematic reduction or elimination of waste.

There are seven kinds of major waste: Overproduction Muda, Stock Muda, Transport Muda, Defects Muda, Delay Muda, Motion Muda, Over processing Muda. It helps to eliminate redundant processes or parts of processes, delete non-value added activities, simplify motions, minimize fatigue, reduce wait time, etc.

iii. Total Productive Maintenance

TPM is keeping machines in good working condition through systematic maintenance of equipment such that they fail less frequently and production process continues without interruption.