Enhancement of Household Productivity by Darshana891107

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									Enhancement of Household Productivity




                               By
                       D.S. Jayawardena




A dissertation submitted in partial fulfillment of the requirement
     of the Continuous Professional Development Module
        of the Higher Diploma in Business Management


                        15th August 2011




                                1
                                        PREFACE



This assignment covers an extensive research on the enhancement of productivity levels of an
average middle class household. Enhancement of productivity of household would preserve
the quality of life with minimum expenditure. The research has evaluated the overall
performance of the key functions and related expenditure in order to determine the existing
productivity of the household and the researcher has made certain assumptions as to what
solutions can be implemented to improve the productivity levels.

The key objective of this project report is to provide a degree of consultancy towards the
improvement of productivity of various divisions related to household expenditure. However,
any reader who might find this report relevant and valuable should read in depth to fully
grasp the core representation of the report. A complete insight into the functions and
procedures employed by the researcher coupled with the external environmental challenges
faced provide the reader with an idea about the problems the household faces in general and
explore some suggestive solutions from the household perspective.

When acquiring the proper information, the researcher has made use of a very comprehensive
data system, featuring observations, questioners, and detailed discussions with the members
of the household. Another important aspect being the analysis of data and using mathematical
models, Pareto analysis and statistical models to forecast future trends, patters and
fluctuations related to the unstable environment.

The importance of the research can be attributed to providing the household with unique
ideas for future decision making processes. The research is an attempt to provide the
household with a detailed investigation of problems faced along with a set of feasible
solutions that can enhance productivity and as a result contribute to the financial benefit of
the household in the long term.




                                               2
                              EXECUTIVE SUMMARY



The objective of the project is to reduce the household expenditure by 20% with the help of
the Pareto Law without discriminating the quality of the life of the family members. In other
words this enhances the productivity of the household expenditure.

The total household expenditure for the month of June was determined through observation
and collected data of the household expenditure. Total of 69 household expenditure items
were recognized. The total expenditure of the household for the month of June stands at
Rs.44233. Analysis of the data with the help of the Pareto principle identified 22 household
items (31.88% of the total household items) as vital few. The expenditure of vital few items
stands at Rs.35342 (79.90% of the total household expenditure).

These outcomes are in accordance with the Pareto principle which states that, for many
events, approximately 80% of the effects come from 20% of the causes. In order to reduce
80% of the expenditure of vital few items, the needed effort is 20% or vise versa. I selected 6
items which highly contributed to the expenditure of vital few and executed determined
strategies with the help of my family members.

As a result the total expenditure of the household for the month of July stands at Rs.35565
which is a reduction of Rs.8668 from the previous month.

Elimination of waste from my home would lead to enhance the productivity of the household
expenditure and preserve quality of life with minimum expenditure. Finally these savings
would favourably impact our family’s development and happiness.




                                              3
                          LIST OF TABLES




Table No                       Description                      Page No

  01       List of items brought for the month of June           25,26

  02       Cumulative percentage tables for the month of June    29,30

  04       List of items brought for the month of July           40,41

  05       Cumulative percentage tables for the month of July    42,43




                                     4
                        LIST OF FIGURES




Figure No                    Description                       Page No


            Pareto chart for the list of Household items
   01                                                            31
            against Monthly Expenditure - June



            Pareto chart for Vital few items against Monthly
   02                                                            44
            Expenditure - July




                                   5
                      TABLE OF CONTENT


PREFACE…………………………………………………………………………………....2

EXECUTIVE SUMMARY…………………………………………………………….........3

LIST OF TABLES…………………………………………………………………………...4

LIST OF FIGURES………………………………………………………………………….5

CONTENTS………………………………………………………………………………......6

    CHAPTER 01 – INTRODUCTION………………………………………………..8

    1.1 Introduction about the research…………………………………………………...9
    1.2 Statement of the problem………………………………………………………...10
    1.3 Objective of the research...……………………………………………………….10
    1.4 Significance of the study………………………………………………………....11

    CHAPTER 02 – BACKGROUND…………………………………………………12

    2.1 Background to the problem………………………………………………………13

    2.2 Different approaches in previous research...…………………………………..…15

    CHAPTER 03 – METHODOLOGY……………………………………………....17

    3.1 Population and Sampling………………………………………………………....18

    3.2 Instrumentation…………………………………………………………………...19

    3.3 Procedure and Timeframe………………………………………………………..20

    3.4 Conceptual Framework…………………………………………………………..21

    3.5 Validity and Reliability…………………………………………………………..21

    3.6 Assumptions……………………..…………………………………………….…22

    3.7 Scope and Limitation………………………………………………………..…....22




                                 6
CHAPTER 04 – DATA PRESENTATION………………………………….…....23

CHAPTER 05 – DATA ANALYSIS……………………………………………….27

CHAPTER 06 – FINDINGS………………………………………………...……...32

CHAPTER 07 – CONCLUSION AND RECOMMENDATION………………..35

7.1 Conclusion………………………………………………………………..………36

7.2 Recommendation…………………………………………………………………37

CHAPTER 08 - IMPLEMENTATION AND RESULTS……………………..…39

CHAPTER 09 - REFERENCES AND BIBLIOGRAPHY……………………….45




                       7
 CHAPTER 01

INTRODUCTION




     8
1.1 Introduction about the research

This project is carried out to reduce household expenditure in order to achieve the
productivity in household without prejudicing the quality of life of the family members. This
project consists of a detailed data collection of our household expenditures and analysis of
enhancing the productivity by reducing the household expenditure by 20%.

The data collection was conducted over one month period in order to determine the current
monthly expenditure of the household. After that I suggest some strategies to reduce it by
20%. Then data collection was conducted again over one month period to recognize whether
it actually reduces the household expenditure by 20%.

A methodical evaluation of household expenditure was conducted over one month period in
order to realize the current monthly expenditure of the household. The collected data will be
analyzed to identify the vital few items against the trivial many which contribute to the
expenditure of the particular household.

In the month of June the total expenditure is recorded as it occurs. The data is recorded in a
manner in which it covers all the expenses which occurs in a specific month that is relevant to
the particular study. This research is carried out on our house in the months of June and July.

Our family includes my father, my mother, me and two younger brothers. The way of income
system of our family depends on both of my parent’s salary. Our general income is
approximately Rs 100,000 per month. I have been given all support from my family to
succeed this project.




                                               9
1.2 Statement of the problem

When comparing the current income and expenditure, the rate of increase in the household
expenditure is higher than the rate of increase in income, because of the ever increasing
market prices of the household items. Through current expenses rise day by day, current
income would be stable for a long period. If our family could reduce unnecessary expenditure
from our household, it would impact significantly to the growth of our family through
savings which enhance our safety needs.



1.3 Objective of the research

Standard – 20%

Performance – Reduce the household expenditure

Conditions – 1. Using the Pareto Law

             2. Without affecting the quality of life of the family members.




                                             10
1.4 Significance of the study


The purpose of this project is to reduce the household expenditure by 20% with the help of
Pareto Law without affecting the quality of the family members. Pareto Law states that for
many events approximately 80% of the effects come from 20% of the causes.

With the assist of the Pareto principle, we can identify the vital few items of 20%, which
contributed to 80% of the total household expenditure. As a family, we had a common goal of
reducing the expenditure by 20% of vital few items. In order to achieve that vision, we came
up with some strategies and implemented in a successful approach.

This entire effort of our family members, eventually facilitate, to eliminate waste, unevenness
from our house. The reduction of the household expenditure will lead quality of life with
minimum expenditure. Our future is determined by us from the decisions we make the right
decision and survive without any fear.

When we develop four intelligences (physical, mental, emotional & spiritual) we would
become responsible people and ultimately we would learn how to u
								
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