productivity analysis

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					              Productivity Analysis

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



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




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             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.




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      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
     productivity
   – Can be used in operations that use more than one
     production factor
 4/13/2013
 4                      mzafinance@gmail.com
        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


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



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Description: productivity analysis is a important matter.