What is Productivity | Productivity Improvement Techniques

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Productivity is the ratio of output to inputs in production; it is a measure of the efficiency of production. Productivity refers to the efficiency of the production system. It is the concept that guides the management of production system. It is an indicator to how well the factors of production (land, capital, labour and energy) are utilised.

European Productivity Agency (EPA) has defined productivity as,

“Productivity is an attitude of mind. It is the mentality of progress, of the constant improvements of that which exists. It is the certainty of being able to do better today than yesterday and continuously. It is the constant adaptation of economic and social life to changing conditions. It is the continual effort to apply new techniques and methods. It is the faith in progress.”


Productivity Improvement Techniques


1. Computer Aided Design (CAD), Computer Aided Manufacturing (CAM), and Computer Integrated Manufacturing Systems (CIMS): CAD refers to design of products,processes or systems with the help of computers. The impact of CAD on human productivity issignificant for the advantages of CAD are:

(a) Speed of evaluation of alternative designs,

(b) Minimisation of risk of functioning, and

(c) Error reduction.

CAM is very much useful to design and control the manufacturing. It helps to achieve the effectiveness in production system by line balancing.

(a) Production Planning and Control

(b) Capacity Requirements Planning (CRP), Manufacturing Resources Planning (MRP II) and Materials Requirement Planning (MRP)

(c) Automated Inspection.

2. Computer integrated manufacturing: Computer integrated manufacturing is characterized by automatic line balancing, machine loading (scheduling and sequencing), automatic inventory control and inspection.

1. Robotics

2. Laser technology

3. Modern maintenance techniques

4. Energy technology

5. Flexible Manufacturing System (FMS)


1. Financial and non-financial incentives at individual and group level.

2. Employee promotion.

3. Job design, job enlargement, job enrichment and job rotation.

4. Worker participation in decision-making

5. Quality Circles (QC), Small Group Activities (SGA)

6. Personal development.


1. Material planning and control

2. Purchasing, logistics

3. Material storage and retrieval

4. Source selection and procurement of quality material

5. Waste elimination.


1. Methods engineering and work simplification

2. Job design evaluation, job safety

3. Human factors engineering.


1. Value analysis and value enginering

2. Product diversification

3. Standardisation and simplification

4. Reliability engineering

5. Product mix and promotion.


1. Management style

2. Communication in the organisation

3. Work culture

4. Motivation

5. Promotion group activity.

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