Here is a compilation of essays on ‘Productivity in an Industry’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Productivity in an Industry’ especially written for school and college students.
Essay on Productivity in an Industry
Essay Contents:
- Essay on the Meaning of Productivity
- Essay on the Concept of Productivity in Industry
- Essay on the Background of Productivity
- Essay on the Productivity Cycle
- Essay on the Partial Productivity in an Industry
- Essay on the Total-Productivity in an Industry
- Essay on the Factors Affecting Productivity
- Essay on the Methods of Improving Productivity
Essay # 1. Meaning of Productivity:
“Productivity implies development of an attitude of mind and a constant urge to find better, cheaper, quicker, easier and safe ways of doing a job, manufacturing an item and providing a service.” – V.K.R. Menon
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Basically productivity is the term which represents the degree of effectiveness of industrial management in utilizing facilities for production. It can also be considered as a measure of what output of goods or services is produced for a given amount of input resources (manpower, money, material, machines and methods).
Since the beginning of the industrial era, the manufacturers or producers have been facing the problem of how to use the available resources and factors of production to the best of their availability and capacity, so as to get the maximum output with the minimum cost of production.
Industrial revolution, social, technological and scientific development, and changes in economic system are the various factors that have contributed to the process of development and the process of change is still on. New and new machines, methods and technology are being invented and used in the industrial field to minimize the wastage of men, materials and machines. It is the job of all to increase the productivity.
Productivity is an indicator reflecting the changes in the performance of the enterprise and having some sort of input-output comparisons relating to various activities of an organization. It also facilitates the management to control and plan its future operations of the enterprise. To achieve higher productivity contributions by all sections of the community i.e., by workers, employers and government are necessary.
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In a company, the main responsibility for increasing productivity rests with its management. It must help to create a favourable climate for a productivity programme and seek the co-operation of the workers.
The government must take necessary steps to maintain employment and create employment opportunities for those who are unemployed or under-employed and for those who may become redundant as a result of productivity improvement programmes.
Essay # 2. Concept of Productivity in Industry:
Productivity is generally regarded as “efficiency in industrial production” to be measured by some relationship between outputs and inputs. The increase in productivity is looked upon as the key to prosperity at all levels.
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In industrial term, it refers to the relationship between the results and the means employed or to be more specific between the product and the factors used for obtaining it. It is the quantitative relationship between what we produce and the resources we use to obtain it. It can also be termed as the ratio of what is produced to what it is required to produce. The higher is the ratio, greater is the productivity. Thus, it seeks to measure the economic soundness of the use of means.
It means productivity in industry can be considered higher if the same amount of production is obtained with small quantity of means. It is highest when there is maximum production with the least quantity of resources. Prof. VIVEK MISHRA, therefore defines productivity as “that balance between all factors of production that will give the highest result for the lowest effort.”
A productivity index is a device of expressing the ratio between outputs and the inputs of the resources numerically. These indices are prepared by comparing the volume of output of goods with the labour employed on the jobs or the profit of the firm with the capital employed.
If the comparison shows the upward trend in indices, it is a sign of improved or better productivity and vice-versa. It may also be treated as a ratio between the volume of output as measured by production indices and the corresponding volume of labour input as measured by employment indices. The productivity is a measure of how much input is required to achieve a given output.
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Symbolically,
P = Productivity
O = Output
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l = Input
The output may be measured in terms of the units of goods produced or the value of goods and services produced. The inputs can be referred to as the combinations of the different factors, i.e., raw materials, machinery, worker’s time, power, efforts and imagination of entrepreneurs and the managers, A unit of output, therefore, can be expressed as one worker or one hour of labour time or one unit of finished goods and so on.
Thus it is very clear from the above description that the productivity can be calculated or measured from each one of the factors comprising the inputs or of all factors together. The productivity of the labour, for example, can be found out by ascertaining the ratio between the quantity of goods produced and the number of workers or man-hours employed on the production of such type of outputs.
Generally in any industry, the productivity is analogous to the efficiency of a machine. It can also be explained as human efforts to produce more and more with less and less efforts and input resources as a result of which the benefits of production are distributed among maximum number of people.
Basically, it is an attitude of mind. It reflects the mentality of progress, and constant improvement of that which exists. It is certainty of beings able to do better than yesterday and continuously. It is regular adaptation of technical, economical and social life to changing conditions.
The following are some of the examples which illustrate productivity in an industry:
A machinist is able to produce 35 jobs per day on two machines instead of 25 jobs per day by attending to one machine only.
Secondly, a machine tool produces 150 jobs per day instead of 90 jobs through the use of improved cutting tools.
Third example, a machinist is able to produce 10 parts from 12 inputs by changing his cutting method, in place of the usual 15 inputs he used to take previously.
One common thing that we find in above mentioned examples is the increase in output i.e., productivity. Thus, we can say that without any change in inputs, the output is increased. So the efficiency or ratio of output and input is called productivity. This productivity in industry is increased by either utilizing the resources optimally or by reducing the wastages.
Essay # 3. Background of Productivity:
The concept of the productivity arises from the production system. When the system was at growing stage, the emphasis was not on the efficiency of the system. Neither employer nor employees had idea about the effectiveness and output was not in accordance with inputs that’s why wastages were more and profits were less, but after the scientific management concepts people seemed productivity conscious.
Although productivity relates with the production but both are different. Production refers to absolute output while productivity is a relative term; where output is expressed in terms of inputs. The production may rise without the corresponding rise in the productivity and vice-versa. If the input remains the same and the production of output increases, there is a rise in productivity.
If the increase in output is higher much than the increase in inputs, there is still a proportionate rise in the level of productivity. But if the output rises at slower rate than the inputs, there will be fall in productivity even though there is an increase in production on the whole.
Production is a ‘quantitative’ term whereas productivity is a “qualitative” term. The concept of productivity is a great significant for industry. It gives the direction to use the resources optimally with least wastages.
Basically, it relates with value of resources utilization and can be expressed as:
Productivity = Value of outputs produced/Value of resources utilized
In industry utilization of resources means optimum use of land, building, materials, machines and manpower.
The use of all these resources combined together determines the productivity of the enterprise. Because higher productivity denotes more outputs from the same resources, it also means lower cost per unit and more return per unit.
Essay # 4. Productivity Cycle:
Productivity is a ratio of outputs and inputs and productivity cycle is a dynamic process having the same starting and ending point. So productivity cycle starts with inputs; it converts input into finished goods or outputs; it consumes and again recovers from wastage as a input for again converting into output; this is called productivity cycle in brief. Now we want to explain it into detail by following diagrams (Production System). [Fig. 1.1]
The aim of productivity cycle is to improve in productivity results in lower cost per unit by effective utilization of all the resources and reducing wastage. Lower cost per unit contributes to increased profit levels so that company can invest the surplus in new technology equipment’s and machines. This will result in further productivity increased and also there is a greater employment generation due to new investments.
The productivity increase results in higher wages to employees as profit potential of the company increases thereby increasing purchasing power of workers. Thus a productivity cycle or chain-reaction for productivity increase is the foremost requirement of today’s world and industry.
This can be explained in detail by following diagrams. [Fig. 1.2]:
Essay # 5. Partial Productivity in an Industry:
Generally productivity is related with the aggregate or overall performance measurement, but it creates a problem in certain circumstances like producer produces different types of output so it is necessary to have a common type of unit of measurement to arrive at the aggregate output.
Similarly, whenever different kinds of inputs such as capital and labour are to be added to arrive at an aggregate input figure, a common unit of measurement is needed for these inputs.
Partial productivity is very much useful for analysing different resources performance and it includes followings:
(a) Material-Productivity:
In every industry, material is essential resource and is always considered the soul of the system. Its proper utilization is the key to success.
It is expressed as:
Material-Productivity = Value of outputs produced/Unit (or cost) of materials used
Material-productivity can be increased by:
(i) Proper selection of material.
(ii) Proper motivation and training to employees.
(iii) Wastage reduction.
(iv) Recycling and reuse of waste material.
(v) Proper storing and handling of materials,
(vi) Proper Research and development (R&D).
(b) Man Power Productivity:
In industry the manpower is also a very important resource and when ratio of the total outputs in quantity with the total man-hours measured; it is called man-power productivity.
It may be represented as:
The man-power productivity can be increased by:
(i) Proper selection of process,
(ii) Careful product-design.
(iii) Appropriate training,
(iv) Motivation to employees,
(v) Improved working condition, and
(vi) Proper supervision and controlling,
(c) Capital-Productivity:
It is a ratio of value of output of goods and capital assets employed and is represented as:
Capital-productivity can be increased by:
(i) Optimum use of capital resources like land, building, machinery,
(ii) Proper capital utilisation.
(iii) Using modern manufacturing techniques,
(iv) Appropriate plant layout.
(d) Energy-Productivity:
It is a ratio of value of output of goods and the units (or cost) of energy used.
It may be represented as:
Energy-productivity can be increased by:
(i) Proper design of energy-system.
(ii) Proper selection of energy means such as coal, gas, etc.
(iii) Reducing wastage of energy,
(iv) Proper monitoring of energy supply.
(e) Machine Productivity:
It is ratio of value of output of goods and actual machine- hours utilized and are represented as:
Machine-productivity can be increased by:
(i) Application of work-study,
(ii) Utilisation of skilled and trained worker,
(iii) Proper maintenance,
(iv) Proper scheduling and routing, and
(v) Application of proper techniques.
(f) Other Inputs Productivity:
Similarly the ratio between the value of output of goods and other inputs like insurance, taxes, advertising etc. We can measure their productivity.
Essay # 6. Total-Productivity in an Industry:
Total productivity expresses the efficiency of the entire industry. It can be determined by the ratio of aggregate output with aggregate inputs like materials, man-powers, capital, machines, energy etc.
It may be represented as:
The measurement of total-productivity creates a problem because different kinds of inputs like land, labour and capital are to be added to arrive at an aggregate input figure so a common unit of measurement is needed for these inputs. The most common way is to express both outputs and inputs in monetary terms like;
Aggregate output = Total sales = S (say) and
Aggregate input = Cost = C (say)
This derivation gives the information that if profit is zero (i.e. P = 0) so the value of ‘tp’ will be 1, thus profit to cost ratio determines the increase in productivity.
Another way to calculate the total productivity is we have to convert all the inputs in monetary terms by multiplying units of inputs with their respective cost and aggregate them. The output is also expressed in monetary term and this ratio gives the clear picture about the total-productivity.
Total productivity can be increased by considering all the factors mentioned in sec. (1.5).
Essay # 7. Factors Affecting Productivity:
As we know, productivity is a ratio of output and input, so all the factors which affect output and inputs will also affect the productivity.
The following factors affect the productivity:
(a) Organisational Factors:
It includes various steps taken by organisation towards maintaining better industrial relations such as delegation and de-centralisation of authority, participative management i.e., worker’s participation in management, organisational efficiency. Proper human resource policies related with selection, promotion, wage and salary administration, training, supervision, motivation, communication etc.
Likewise the existence of certain groups with higher productivity as their goal is likely to contribute to the organisational objectives. These facts were brought out by management researchers in their experiments. A properly-motivated worker will certainly contribute to the productivity.
(b) Technological Development:
Technical factors including the degree of mechanisation, technical know-how, raw-materials, layout, methods and techniques of work determine the level of technological development in any industry.
The principal factors in technology development affecting productivity are:
(i) The Size of Plant:
The sizes of the plant and the capacity utilization have direct bearing on productivity. Production below or above the optimum level will be uneconomical and will tend towards lower level of productivity.
(ii) Research and Development:
Investment in research and development may yield better methods of work, better design, and better quality of products.
(iii) Plant and job layout:
The arrangement of machines and positions in the plant and setup of the work-bench of an individual worker will determine how economically the productivity will be increased.
(iv) Machines and equipment’s design:
Whether the design of machinery and equipment is modern and in keeping with the limitation and capacities of the workers will also determine the production efficiency and level of productivity.
(v) Production Process:
Advanced production process involving the use of modern integrated and automatic machinery and semi-processed materials have been known to help in raising the levels of productivity.
(vi) Power, Raw-Material’s etc.:
Improved quality of raw materials and increased use of power have a favourable effect on industrial productivity.
(vii) Scientific Management Techniques:
Scientific management techniques such as better planning of work, simplification of methods, time and motion study (work-study), emphasis for reduced wastages and spoilage have positive effects on productivity.
After discussing above factors we can realise that technological developments require a great amount of funds and general economic and technical environment in the country.
Thus capital plays an important role in increasing the productivity through technological development, it should also be recognised that such development influences the job performance of employees. With better machines, tools and processes, it should be considered that both ability and willingness to work should be increased.
(c) Individual Factors:
Individual factors like knowledge, skill, attitude and behaviours also affect the productivity of industry. Knowledge can be acquired through training, education and interest on the part of learner.
Skill is affected by attitude and aptitude (i.e., one’s capacity to learn a particular kind of work), personality (emotional maturity, balance of mind, etc.) as also by education, experience, training etc. Increased knowledge, skill and aptitude certainly increase the productivity and a person deficient in these attributes is less productive than an average man.
The attitude (willingness of employee to work for organisation) of employees towards the work and the organisation affect productivity to a great extent. Knowledge without willingness is futile.
The urge to work is a complex phenomenon governed by several factors such as formal and informal organisation, leadership, need, satisfaction, influence of trade union, etc. These factors motivate the workers to work in better way with interest and enthusiasm so that simultaneously wastage reduces and productivity increases.
(d) Work-Environment:
The importance of proper work environment and physical conditions on the job has been emphasised by industrial psychologists and human engineers. Better work-environment ensures the greatest ease at work through devices, reduction in noise, introducing suitable rest schedule, etc.
(e) Other Factors:
There are several other factors which affect productivity.
These include followings:
(i) Natural Factors:
Physical, geographical and climatic conditions influence the productivity at large. Abundance of natural resources affect the productivity and similarly affect the efficiency of workers to a great extent.
(ii) Managerial Factors:
The industrial productivity is influenced very much through managerial ability and leadership. The managerial ability organising capacity, foresightness, decision-making ability and entrepreneurship are certain factors that contribute to productivity.
(iii) Government Policy:
Government policies towards industries also contributes to industrial productivity. Taxation policy, financial policy, wage and salary policy, administrative policy, tariff and protection policy, environmental policy etc. affect the productivity to a great extent.
After discussing all the factors (A to E) which affects the productivity we can summarize these factors in following diagrammatically (see Fig. 1.4):
Essay # 8. Methods of Improving Productivity:
It is very essential to know the specific productivity of a process, plant or a country so that it can be compared to other process, plant or a country. But the major emphasis in productivity is on its improvement. Industrial experts are mostly concerned with improving the productivity of the organization in which they work.
The aim is to raise it relative to other similar organisation or to raise it relative to the organisations own performance in a previous period. The improvement in productivity in the latter case is determined by dividing the current productivity by the productivity in a previous period (base period) and expressing it as a percentage.
Every industry tries to improve the productivity and it can be improved broadly by following two ways:
(i) Increase the resources hence production, and
(ii) Effective utilization of resources.
In first method for increasing resources we have required capital investment but in second method very little capital investment required.
The basic productivity improvement methods can be shown by Fig. (1.5).
(I) Technology Oriented:
Followings are the main methods used in modem industries:
(a) Computer aided activities like design (CAD), manufacturing (CAM), and process planning (CAPP). These are some important areas where computer is being used very frequently and it saves time, labour cost and also reduces the wastage of resources with speedily production to get the higher productivity.
(b) Robotics and other automations in process.
(c) Modern material handling systems like conveyors, cranes. AGVs (automatic guided vehicles) etc.
(d) Advanced maintenance techniques.
(e) Just-in-time, kanban system.
(f) Group-cell and Modular cell techniques.
(g) Laser and other electronic systems.
(h) Modern and advanced energy systems.
(i) Advanced inspection and communication like MIS systems.
(II) Material Oriented Techniques:
It includes:
(a) MRP (Material Requisition Planning).
(b) Purchasing.
(c) Store Keeping and Retrieval.
(d) 3-PL (Third Party Logistics)
(e) Alternative materials and suppliers selection.
(i) Wastage reduction.
(g) Material-handling and transportation system.
(III) Process-Oriented:
It includes:
(a) Work-disintegration and simplification.
(b) Process selection and critical planning.
(c) Standardization and specification.
(d) Work-design and evaluation.
(e) Process-controlling.
(J) Feedback System.
(g) Safety and ergonomic aspects.
(IV) Man-Power-Oriented:
It includes:
(a) Employee selection and placement.
(b) Manpower training.
(c) Salary-wage and incentives.
(d) Job promotion and punishment norms.
(e) Motivational techniques.
(f) Decision making.
(g) Participative management.
(h) Quality circle and other related activities.
(i) Human-resource-development (HRD) programs.
(V) Task-Oriented:
It relates with management techniques and includes:
(a) Organisation structure.
(b) Leadership style.
(d) Authority and Responsibilities.
(a) Working environment.
(e) Communication system.
(f) Span of control and chain of commands, etc.
(VI) Product-Oriented:
It includes:
(a) Product planning and selection.
(b) Product design and drawing.
(c) Cost, function and aesthetic aspects.
(d) Simplification and standardization.
(e) Reliability and failure analysis.
(f) Diversification and expansion.
(g) Product, price, place and promotion (i.e., 4Ps or product-mix) strategies.
(h) Value and qualify analysis, etc.
Other than above discussed methods we should adopt following methods also:
(i) Improvement in existing industrial activities.
(ii) Clearly define the objective of activities.
(iii) Design, drawing and material of product.
(iv) Specification and tolerances of product.
(v) Optimum utilization of resources.
(vi) Advanced manufacturing processes.
(vii) Improved working conditions.
(viii) Reducing work-contents.
(ix) Use of ergonomics.
(x) Changing in plant layout.
(xi) Fatigue analysis.