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Minggu, 25 Desember 2011

How to measure labor productivity?


Definition
Most simply, productivity is the ratio between output and inputs. 

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, 


Assume that 
   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 or operating 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.

1 komentar:

gclass2011 mengatakan...

In my opinion, the measurement of labor productivity in the company desperately needed it because of the importance of productivity and work output should be balanced. Where in the article above in determining productivity is influenced by several factors, including the amount of labor, the time taken by workers in producing some product, and the number of products produced by each worker.from the article above, the productivity of labor equal to the value of production divided with labor input. Labor productivity measures are very influential in the development of the company, as to which the method of forecasting is forecasting the number of products that should be in production in determining the amount of supply and demand in the community. So that the measurement of labor productivity is needed in the company to make the production process. and with the measurement of labor productivity in the company can assist companies in producing a product optimally. and it is also able to balance between the input in use by companies such as labor costs, electricity, and capital with output that is issued in the form of finished products ready for market. So that the measurement of labor productivity within the company needed in each company to find out how productive workers in the company, which it can be profitable for the company.

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