Measure of Labor Productivity in Textile Industry
Measure Of Labor Productivity
Productivity is the relationship between the quantity of output and the quantity of input used to generate that output. It is basically a measure of the effectiveness and efficiency of your organization in generating output with the resources available.
Most simply, productivity is the ratio between output and inputs.
Productivity = Output/Input
Essentially, productivity measurement is the identification and estimation of the appropriate output and input measures.
Measures of Output
Output could be in the form of goods produced or services rendered. Output may be expressed in:
- Physical quantity
- Financial value
At the operational level, where products or services are homogeneous, output can be measured in physical units (e.g. number of customers served, number of books printed). Such measures reflect the physical effectiveness and efficiency of a process, and are not affected by price fluctuations.
At the organization level, output is seldom uniform. It is usually measured in financial value, such as the following:
- Production value (i.e. sales minus change in inventory level)
- Value added
Measures of Input
Input comprises the resources used to produce output. The most common forms of input are labour and capital.
Within a factory, industrial engineers or factory managers and line supervisors measure the number of garments produced by a line of sewing machine operators in a specific time frame. Generally factory works 10 to 12 hours a day. Total production (output pieces) of a line and total labor involved in producing those pieces is required to calculate labor productivity. See following example,
Total production in day =1200 pieces
Total labor (operator +helpers) = 37
Working time = 600 minutes (10 hours)
So, Labor productivity per 10 hours is =Total pieces produced/ total labor input = (1200/37) Pieces =32.4 pieces.
Another productivity measure is labor efficiency, which is a comparison of the time spent working productively to the total time spent at work. These metrics are appropriate for analyzing and comparing the productivity of a particular production line or factory that turns out specific apparel products. However, comparing productivity levels across products oroperating lines can be difficult because the benchmarks.
Differ from one garment to another. Calculation of labor efficiency is shown below. Consider above data.
SAM (Standard allowed minutes) of the garment = 8.9
Minutes produced by each labor= (32.4 pieces X 8.9) = 288 minutes
Available minutes was 600
So, Labor efficiency = (Produced minutes/available minutes) = (288/600*100)% = 48%
To compare productivity estimates across products, factories, or even industries, economists define labor productivity as the production value added that each worker generates. In this case, labor productivity equals the value of production divided by labor input. The value of production is generally measured as value added, equal to the gross value of sales minus the value of purchased inputs such as fabric, trim, and energy. Labor input is measured by total work hours. Labor productivity can thus be estimated at the national, aggregate level and for specific industries in an economy.