A Brief Note On Productivity: Old System Of The Product

Submitted By extinguish79
Words: 412
Pages: 2

Productivity
Units produced
Productivity =
Input used
 Measure of process improvement
 Represents output relative to input
 Only through productivity increases can our standard of living improve

Productivity Calculations
Labor Productivity
Units produced
Productivity = Labor-hours used
1,000
=
= 4 units/labor-hour
250

Multi-Factor Productivity
Output
Productivity =
Labor + Material + Energy
+ Capital + Miscellaneous
 Also known as total factor productivity
 Output and inputs are often expressed in dollars

Collins Title Productivity
Old System:
Staff of 4 works 8 hrs/day
Payroll cost = $640/day

8 titles/day
Old labor = productivity 32 labor-hrs

8 titles/day
Overhead = $400/day

Collins Title Productivity
Old System:
Staff of 4 works 8 hrs/day
Payroll cost = $640/day

8 titles/day
Overhead = $400/day

8 titles/day
Old labor =
= .25 titles/labor-hr
32
labor-hrs productivity Collins Title Productivity
Old System:
Staff of 4 works 8 hrs/day
Payroll cost = $640/day
New System:
14 titles/day

8 titles/day
Overhead = $400/day
Overhead = $800/day

8 titles/day
Old labor =
= .25 titles/labor-hr
32
labor-hrs productivity 14 titles/day
New labor =
32 labor-hrs productivity Collins Title Productivity
Old System:
Staff of 4 works 8 hrs/day
Payroll cost = $640/day
New System:
14 titles/day

8 titles/day
Overhead = $400/day
Overhead = $800/day

8 titles/day
Old labor =
= .25 titles/labor-hr
32
labor-hrs productivity 14 titles/day
New labor =
= .4375 titles/labor-hr
32
labor-hrs productivity Collins Title Productivity
Old System:
Staff of 4 works 8 hrs/day
Payroll cost = $640/day
New System:
14 titles/day

8 titles/day
Overhead = $400/day
Overhead = $800/day

8 titles/day
Old…