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What is productivity of materials? How it differs from total productivity?

Subject: Production Engineering and Robotics

Difficulty: Medium

Marks: 4 Marks

1 Answer
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Material Productivity:

i. Material consist of direct material and indirect material, Direct material means which goes with the product and indirect material means other consumable like fuel, chemicals in heat treatment, cutting tools, coolant etc. Material productivity measures in terms of goods produced.

ii. Therefore, Material Productivity = $ \frac{ cost \ of \ number \ of \ unit \ produced} {Total \ material \ cost}$

Difference between material productivity and total Productivity:

  • For measuring total or overall productivity of any firm following relation is used,

    Overall or Total Productivity = Value of total output / Value of total input Where, Inputs = Labour + Materials + Machinery + Money.

  • As total productivity is a ratio of total outputs and inputs of industry or plant and materials are included in inputs of plant therefore material productivity consider only cost of materials as input. Therefore material productivity can’t indicate total productivity of the plant and it is always greater than total productivity.

  • Material productivity is a technique of measurement of productivity in terms of cost of material whereas total productivity is the efficiency of the plant.

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