productivity analysis by niamatullah85


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									              Productivity Analysis

                   Md. Zahangir Alam
             Assistant Professor of Finance
         Department of Business Administration
       International Islamic University Chittagong
                     Dhaka Campus

4/13/2013              1
    A measure of the effective use of resources, usually
    expressed as the ratio of output to input.
    Productivity= Output/Input

4/13/2013                2
             Partial vs. Total Productivity
      • Partial Productivity
        It is the relationship between one input factor and
        the output attained.
      • Total Productivity
        It is the relationship between total input factors
        and the output attained.

4/13/2013                   3
      Operational vs. Financial Productivity Measures

• Operational productivity measures
   – Use physical measures, which are easier for operational
     personnel to understand
   – The measures are unaffected by price changes and other
     factors, which makes them easier to benchmark
• Financial productivity measures
   – Considers the effect of cost (major concern for
     management) and quantity of an input resource on
   – Can be used in operations that use more than one
     production factor
        Factor that Affect Productivity
• Numerous factor affect productivity. Generally
  the are methods, capital, quality, technology
  and management.
•   Standardizing
•   Scrap rate
•   Layoff
•   Labor turnover
•   Design of the work place
•   Incentive plan

4/13/2013          5
            Improving Productivity
•   Develop productivity measurement
•   Bottleneck Operation
•   Develop method
•   Establish reasonable goals for improvement
•   Reward workers for contribution
•   Measure improvement and publicize.

4/13/2013          6

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