Job satisfaction: Human resource is an of import input to the production /services system..It is the duty of Management to see to it that employees are motivated through just compensation for the work done by them.Incentive systems shoule be designed to honor workers for a occupation good done.It should be seen that workers do their occupation in safe and hygienic conditions which gives them quality of work life..Labour turnover and absenteeism should non take topographic point because it straight affects Productivity
Government Policy: While taking a expression at production/operations system it is noted that among the macro- environmental factors Government Policy plays a major function in doing Torahs which decide the freedom given to a concern house through enforcing several Torahs. These Torahs like MRTP, FERA etc which have a profound inpact on the productiveness of a house.
Management: The mission, vision and aims of an Organization are framed by Top Management. It is in-between direction which gives guidelines to the workers what they should make and how they should make it in the best possible manner so that the mission of the Organization is fulfilled. A supervisor represents the lowest degree of direction and is in close contact with the workers.Good co-ordination between them is qa warrant of accomplishing good productiveness.
Capital: Financial input is one of the major inputs in the input end product system.Productivity which is an index of the synergism should do wise usage of money while buying of stuffs. , Machinery and Capital equipment so that non a rupee is wasted..Even directors should put an illustration before subsidiaries by a economical usage of money. They should non seek to go a quarry to a 5 star civilization and unrecorded apparently.Such an attack is called Entire Cost Management.
Competition: Rivals form the micro-level environment.A house should try to heighten it ‘s productiveness maintaining in head the attack of the rivals towards betterment of productivity..The positive points of rivals should be emulated by the house to heighten its productiveness.
Natural Resources: Effective harnessing of available natural resources is a necessary status to heighten productiveness.
Material Planning and Management: The procurance of stuffs should be planned on the footing of 5Rs i.e right beginning, right clip, right measure, right quality and right monetary value.
Plant and Equipment: The works and equipment should hold be capable to give right end product with maximal handiness and operate at the rated speed.The overall equipment effectivity should be more than 70 per centum which is a really good industry criterion.
Quality: The quality of the merchandise or service as per the specifications.and should be verified by proper proving procedures.It is an wrong impression that Quality and Productivity are diametrically opposite standards.According to Deming, the quality Guru, good quality merchandise denotes less defectives and more utile end product.
Plant layout: and Operationss scheduling: Proper workplace layout and design helps in a streamlined flow of stuffs. which is contributing to fewer constrictions if the programming is done decently
Research and Development: Harmonizing to Peter Drucker the direction Guru. Industries do merely two good things: One is developing new and competitory merchandises and secondly marketing them to the clients.Good Rand D helps houses to stay competitory and Fosters Productivity
Standardization of merchandise and procedures: The house should update its procedures so that the transition of natural stuffs into finished merchandises is achieved with the production of minimal bit. Equally far as possible standard constituents should be used in the concluding assembly.Designers should be encouraged to utilize standard parts alternatively of non criterion parts as per their caprices.By presenting modularity in the Product Design, a client can be supplied merchandises as desired by them.This gambit is termed Mass Customization.
8 Sociological factors ; A Proper work civilization should be inculcated in the workers.For accomplishing thie, the supervisors and even higher degrees of direction should non waver to dirty their hands.This can be a really good incentive to the workers and consequence I higher degrees of Productivity.
2.6 PRODUCTIVITY IMPROVEMENT TECHNIQUES
The techniques could be classified into 5 basic types which are as follows
Merchandise and Process based
1. Technology-based techniques:
Automation based such as CAD/CAM, Robotics, Energy preservation engineering, Maintenance direction, reconstructing old machines, These techniques cut down assorted Input values.
2. Merchandise and Process based techniques:
Merchandise based techniques leverage stuffs input ( IM ) to the greatest extent. Product variegation, Product simplification, Standardization, Advertising and Promotion.enhance market size and value of end product to increase productiveness
3. Employee-based techniques:
Incentives, occupation rotary motion, occupation expansion, occupation enrichment, developing & A ; instruction, quality circles, wages and penalty etc. These techniques preponderantly cut down human resource inputs ( IH ) value.thereby increasing Productivity
4. Material-based techniques:
Inventory control, material demand planning, stuff handling betterment, recycling of stuffs, quality control. These techniques cut down stuff input costs IM value straight.resulting in increased productiveness
5. Task-based techniques:
Methods technology, Work measuring, Ergonomics ( Human Factors Engineering ) .
The above list is merely an declarative list. Any peculiar industry has to find for itself which of the techniques will ensue in enhanced productiveness. The productiveness betterment commission has to take the technique which suits their demand without needlessly increasing the cost of input. What is most of import is that a scheme should be implemented efficaciously.
Such a doctrine is critical for increasing the opportunities of accomplishing the desired long-run profitableness. Furthermore, in many instances ( in which the house is loath or unable to set about the necessary selling research surveies ) I is the lone variable manner of supplying guidelines for resulting old ages schemes.
Related to the adaptative experimentation attack is the needful focal point on productiveness. Strategy entirely, can non take to the desired consequences. Good operations are besides required. The relationship between scheme and operations is illustrated in Fig 2.3. The thought, of class, is to be in cell IV. Yet, houses frequently find themselves in cells I or III the hapless operations cells. Adaptive experimentation can assist better the quality of the house ‘s long-range scheme ; nevertheless, it must be supplemented with attacks to better operations.
FIGURE 2.3 The Relationship between Strategy and Operations
Glossary of Footings
Matching physical work capacities and physical environment.
Deals with two basic inquiries ; when to order and how much to order
Addition in the duties linked with a job.It is a non-financial motive technique to better human productiveness.Gives worker pride of ownership of occupation He can stamp name on merchandise
Supplying assortment in assigned undertakings giving liberty to finish a occupation of higher position.
Job is changed for short periods of clip to interrupt humdrum and ennui.
A systematic process to extinguish, unite or cut down work content of a undertaking. through method survey tools like flow charting ; micro gesture analysis
Addition of new merchandise types to bing theoretical accounts.in new markets.A hazardous but promising scheme
Elimination of excess merchandise lines, types and theoretical accounts.
Bettering human productiveness by specialisation on the occupation work.
MEASUREMENT OF PRODUCTIVITY
Productiveness may be measured quantitatively, qualitatively, or in footings of results.
Quantitative Measure – A type of productiveness step that focuses on the measure of merchandise produced. and both the input and end product can be expressed in pecuniary footings
Qualitative Measurement – A type of productiveness step that is concerned with the quality of what is produced.but can non be counted numerically.A point evaluation can assist in such instances where the end product and input are intangible e.g. in instance of service suppliers
Outcome Measurement – A type of productiveness step that determines whether the merchandise satisfied the functional demands which it was supposed to make.
Unit Analysis of Productivity
The unit of analysis used to cipher or specify productiveness are
Aggregate productivity-the entire degree of productiveness for a state.
Industry productivity-the entire productiveness of all the houses in an industry.
Company productivity-the degree of productiveness of a individual company.
Unit productivity-the productiveness degree of a unit or section.
Individual productivity-the productiveness attained by a individual individual.
2.7.2 Productivity Model: This theoretical account was developed by Schnieder ( 1965 ) and is used even today as one of the most of import attacks to the computation of productiveness because it is comprehensive and logical.
Entire Productivity Factor is expressed as ratio of end product divided by entire inputs. The inputs include Human, Material, Capital, Energy and other factors.
TPF = Output O/Input I =
Where, Input ( I ) includes
IH Human resource Inputs
IM Material inputs
IC Capital inputs
IE Energy inputs
IX Other Inputs and working capital ( W )
Individual Productivity factors can be calculated based on any specific input, say IH or IM or IC and so forth to find the influence of any peculiar input on Productivity.
2.8 Break Even Analysis utilizing Entire Productivity Equation:
C — -Total Input I minus working capital W
T — — entire productiveness factor
W — — -Working Capital
O — — -Output
I — — Entire Input including working capital
It is to be noted that the on the job capital W includes the hard currency, histories receivable, stock list, etc which are used to pay for other inputs such as rewards and salary, of human resource, oil, gas, H2O and energy measures. Thus W is non included in cost inputs ( C ) in the theoretical account
If TPF is denoted by T we can compose,
T = aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦2.1.
Where C is cost of inputs W is working capital Re-arranging combining weight. 2.1,
P= ( T-1 ) I +Waˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..2.2
If T is set equal to one, net income P = W
Like-wise, at Break-even point P=O, so Total Productivity Factor
O= ( T-1 ) I+W OR TI -I+W =O OR TI = ( I-W ) But ( I-W ) =C
Hence at BEP: TI = C or T = aˆ¦aˆ¦aˆ¦aˆ¦2.3
Therefore, mentioning to the figure 2.4 Breakeven Point occurs at a Entire Productivity factor TB which is slightly less than 1. The reading is that when the net income peers Working capital the Total productiveness factor is one. The net income made in this instance is spent in running the works and paying wages to the workers, At net income equal to zero wages etc have to be paid from companies militias and indicates a place of loss with a TPF less than oneThe theoretical account is explained through an exemplifying illustration:
Example: A certain house has the following informations collected over a specific clip frame:
Entire Input I= Rs 1050,000 ; Output O =Rs 1250, 000 Working capital W =Rs 35,000
Calculate the entire productiveness factor TPF, entire productiveness factor at the break- even point. and Profit based on the Break Even Analysis theoretical account
TPF = Output O/ Input I = 1250,000/1050,000= 1.1 ( about )
TPF at break-even point = C/I = ( 1050,000-35,000 ) /1050,000= .966
Net income = ( Output O-Input I ) + Working capital W.This is because the theoretical account states that a existent net income is made merely when at least a net income equal to the working capital W is made at TPF equal to one ( Refer to fig 2.4 )
Therefore Profit P = ( 1250,000 -1050,000 ) + 35000 = Rs 135,000