How to increase production rate of any Industry

How to increase production rate of any Industry

Productivity Rate Meaning?

The productivity rate meaning is quite simple. Productivity is the measurement of efficiency related to the production process of a company calculation of the productivity that can be done by taking the division of the outputs which are produced by the company byte inputs used in a production process such as capital, natural resources. On the other hand, the outputs are determined in sales or the number of goods or the services that are being developed. Productivity can be determined by analyzing and finding out the number of units produced with respect to the employee, laborers, or by evaluation of a company's net sales with respect to the employee labor hours.

Importance Of Productivity In Terms Of Economy?

Productivity is basically the description of different kinds of measurements of the efficiency of production. It is described as the ratio of an output to a single input or multiple-input used in a production process. It can also be term as output per unit of input. Productivity is considered as an important factor in the production performance of the different organizations as well as nations. As productivity keeps increasing, it has the ability to raise living standards. Because it improves the purchasing power of goods and services. Productivity also increases in leisure, improves housing and education, and helps to for the contribution in the social and environmental program. Productivity also helps the business to become more productive profitable. And helps in generating more revenue.

If I talk to reduction rate in terms of the manufacturing we will come to realize that it relates to the amount of goods that can be e produced at a specific time. Talking alternatively, it can also be defined as the specific amount of time that is required for the production of 1 unit. If we talk about in the construction term productivity production rate define at which workers work for the completion of a specified task or a segment such as a road or a particular building. The production rate is directly proportional to the speed card’s work and can be classified as low average or fast.

Going In Depths Of Production Rate In Manufacturing

The production rate in manufacturing can also be demonstrated as the highest number of output possible and then subtracting it with the rate of defects present in the products. There are bound to be some errors in the items that are being produced by a particular production line and if there is a high amount of defects it will decrease the viability and usability of the products that are being produced—effect of particular Re about manufacturing and construction a production rate. If a production rate is higher it can result in the decrease in quality because if the machine and employees are required to work more than their capacity in a production line or completing a building then they are bound to make more mistake? This is clearly going to result in a decrease in quality and can end up costing the company more even if there is less time required. In successful organizations, the people present at the management level deeply analyses the production line to find out where the errors or slowdowns are being occurred, and then they take necessary call to actions and measures to resolve those issues and increase the production rate. Outside factors are also important for the production rate as the inside factors such as the resources which are available in the market along with the skill personal, and they affect a lot in the production.

Let us consider there is a particular material required for the production, and if the material becomes inaccessible, the production rate is bound to be slow or even halted. Activity is generally ratio, which is present between the output volume and input volume? Talking more simply, productivity defines how effectively resources such as labor material are used in a production line on the economy for generating a specified level of output.

Productivity is one of the vital elements for the growth of economy and competitiveness and is one of the main factors for making international comparisons and for checking out the country performances. There are various uses of finding out productivity. For example, the data encapsulation productivity can be used for the investigation of the effect of a product and labor market regulation and how they are affecting the performance of the economy. And finding out the productivity rate can find out the capacity utilization. This helps to find out the economic position in the business cycle and also predicting about at which rate the economy is supposed to grow. Along with that, the ability to produce is used to find out the demand and inflationary pressures that are present in the market.

One of the globally used measures of productivity is called the Gross Domestic Product. Along with that, there are also various kinds of productivity measures are worldwide, and organizations have to choose between them. Based on the grounds for choosing productivity management or according to the availability of data or information. The gross domestic product gets the use of labor input as compared to the output per employee.

Factors That Have A Great Impact On Productivity

Here am I am listing down some of the main factors that have a very intense effect on productivity.

Personnel Factors

The first one is called personnel factors. It is one of the most important factors as it is directly associated with productivity. In order to serve this factor right, the people associated with Human Resource Department should select the right people for the right position, and once the selection is complete. The employees must be given proper training and development. They also must be provided with a safe working environment and good working conditions. The people present on the managerial level should work really hard to keep their employees motivated. And it's the duty of them to provide them financial stability. And give them a competitive market salary. Job security must also be provided, and opinions from the employees must be taken into consideration. An organization should introduce good personnel policies as all this is going to result in the increase of productivity.

Diligent Management

If I am not wrong, 90% of the productivity relies upon the people present in the managerial position. Some qualities that a management of organization must possess is that they should the scientific, professional, goal oriented and competitive. And they should have strong imagination skills, judgment skills, and have the ability to self assess. They must use the available resources in the most optimized ways and must strive to get the maximum output with the same given level of input at the lowest cost possible. They should utilize the latest technology and techniques for production. They should develop a friendly relation with the employees. So they are fully aware of the problems that are being organized with them. They should keep the people working under them motivated and must provide a safe working environment. They must provide them with their valuable information, so the employee is bound to work more diligently.

Financial Factors

Finance is like the cornerstone of the organization or business. People associated with finance should have Upper Hand on the fixed capital and working capital. They should come up with the proper financial plan and expenditure of a capital and available resources and they should be control properly. They should stop over and underutilization of capitals and the management level should determine that if they are getting the proper return on the capital or other financial elements that are being invested into the business. If there able to get the proper control on the finance factors, the productivity of the organization is supposed to increase overall.

Proper Authority And Responsibility

Productivity is directly associated with organizational factors. There should be a proper authority and responsibility which must be bestowed upon every individual and department which is working on the organization by the organization. The staff relationship must also be properly defined, so there is not any chance of any conflict between the line and staff.

Good Know How About The Government Rules

Productivity also depends upon the policies that are introduced by the government. It is the duty of the upper management to have a good know how about the government rules and regulation and in order to run the organization successfully, they must also strive to maintain a good relations with the government.

How To Calculate Production Percentage

Biz fluent explains How To Calculate Production Percentage in the following words,

For example, Generic Games has an eight-hour workday. The day includes a 30-minute morning meeting, two 15-minute breaks, and an hour for lunch. The total available inputs are the eight hours during the workday, but the inputs used for production total only six hours, for a production percentage of 75 percent (6 hours productive time/8 hours total time = 0.75, or 75 percent).

10th Jun 2020 Faiza Syed

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