Measuring The Productivity - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Manish_khairnar
Hr Manager

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hi there, can anyone mail me a format to measure productivity in a manufacturing unit on khairnarmanish73@gmail.comanybody
Dear Manish,

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Measures of productivity in the manufacturing sector differ from one company to another. A capital intensive steel plant cannot be compared with small scale plastic items manufacturing unit.

Measures of productivity are based on human productivity as well as machine productivity. Therefore, output per person or per ton/quintal is one of the measures. Other measures are equipment utilisation, equipment availability, scrap generated, rejection %, time spent in settling quality issues etc.

In manufacturing units, measurement of following costs is quite important:

a) Inventory Carrying Cost of Raw Materials

b) Work in Progress (WIP) Inventory Costs

c) Inventory Carrying Cost of Finished Goods

d) Capital costs to run the operations

e) Capacity costs

f) Maintenance costs

g) Quality costs

h) Inspection costs

i) Ordering costs

The measurement costs is another way of measurement of productivity. Going further, you may refer the following link:

7 Wastes Muda Article on the Seven Wastes of Lean Manufacturing

Thanks,

Dinesh Divekar


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