UNIT - 1 PRODUCTION CONCEPT

STRUCTURE

1.0 Learning Objectives

1.1 Introduction

1.2 Difference between production and Operations Management

1.3 Productivity

1.4 Work Study

1.5 Productivity Measurement

1.6 Factors affecting productivity

1.7 Production Technology

1.8 Summary

1.9 Keywords

1.10 Learning Activity

1.11 Unit End Questions

1.12 References

1.0 LEARNING OBJECTIVES

After studying this unit, you will be able to:

 Describe the meaning of Operations Management

 Identify the differences between productivity and Operations Management
 State the need and importance of productivity measurement
 List the factors affecting productivity
 Explain production technology

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1.1 INTRODUCTION

Operations management is a field of management involved with supervising, intriguing, and

controlling the technique of creation of goods and re-conspiring business operations in the
creation of products or services. It entails the liability of certifying that business operations
are effective in terms of making use of as few resources as required, and helpful in conditions
of fulfilling customer needs. It is related with controlling the course of action that alters inputs
(in the forms of raw materials, labor, and energy) into outputs (in the form of products and/or
facilities). The connection of operations management towards senior management in business-
related perspectives can be matched up to the correlation of line officers to highest-level senior
officers in military science. The highest-level officers outline the plan and amend it sooner or
later, at the same time as the line officers make calculated resolutions in sustaining the
implementation of the plan. In trade as in military dealings, the limitations amid levels are not
distinctive at all times; planned information animatedly updates approach, and individual
people frequently move between roles eventually.

Ford Motor car assembly line: the traditional illustration of a manufacturing production system.
Post office queue. Operations management studies merchandizing as well as provisions.

As per the United States Department of Education, supervision and direction of the physical
and/or technical operations a firm or organization is an area involved with operations
management, basically those in connection with growth, creation of goods and manufacturing.
Operations management programs characteristically comprise instruction in standards of
general management, manufacturing and production systems, factory organization,
supervision of holding up equipments, production control, industrial labour associations and
accomplished management of trades, tactful industrializing plans, scrutiny of systems
, productivity investigation as well as controlling rates and arrangingmaterials . Management,
counting operations management, is similar to engineering as it combines art with applied
science. For accomplishment, ability, inventiveness, logical analysis, as well as information
of technology are all essential

Productivity is a tool of measurement that determines the efficiency of the organization in terms
of the ratio of output produced with respect to inputs used. Various factors like technology,
plant layouts, equipment, and machinery affect productivity. Hence, operations managers need
to carry out a regular review of all these factors to maintain as well as improve productivity.

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Productivity can be either measured as total productivity or as partial productivity where single
variable or multiple variables are considered. Measuring productivity in production
organizations is relatively easy. But measuring productivity for knowledge workers and in the
service organizations is difficult. Maintaining time sheets to determine the time spent on each
task and the quantity of work done is one of the ways of measuring productivity in the services
industry. Quality is one of the key issues, which defines an organization's competitive position
in the market. Till the mid-seventies quality was only defined by periodic maintenance, but
companies today are using quality as a competitive advantage against the competitors. To gain
competitive advantage in the market through quality, organizations have adopted the Total
Quality Management (TQM) approach. The TQM philosophy states that maintaining and
improving quality is not just the prerogative of quality control department but each and every
employee of an organization is equally responsible. A clever and well-executed advertising
may attract customers initially, but if the product supplied does not match customer’s quality
expectations then in all probability the customer will shift to a competitor's product
Quality is conformance to requirements. A well designed and properly produced product
without any error may not be perceived as a quality product by the customers if it does not
satisfy their requirements. There are eight different quality dimensions that a company can
leverage to gain competitive advantage. They are performance, features, reliability,
conformance, durability, serviceability, aesthetics and perceived quality. Random samples,
statistical control charts, and acceptance plans are some of the tools that are used for quality
control.
Control charts (X-Charts, R-Charts, P-Charts and C-Charts) are used to find out if the quality
of the product is within acceptable limits. The P-chart is used to control the percentage of
defectives in the sample. X-chart and R-chart are used to control sample means and sample
ranges. Average outgoing quality (AOQ) curves and operating characteristics (OC) curves
explain the workings of acceptance plans

1.2 DIFFERENCE BETWEEN PRODUCTION AND OPERATIONS

MANAGEMENT

The primary concern of every business is to develop goods and services to meet customer
demands. Both production and operations management are terms associated with the

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manufacturing side of business operations. Production management is about managing
activities associated with the production of goods.

Meanwhile, operations management is one step ahead of production management. It must be

noted that production management is a part of operations management. Operations
management refers to managers administrating business operations.

The difference between production and operations management often gets blurred. At times,
the two terms are thought to be interchangeable, but they are not. Dig into this article to
understand in detail about operations management and production management: meaning,
importance & functions.

What is Operations Management?

Operations management is the monitoring, design, and prepping of business operations. The
primary goal of operation management is to improve the quality of business operations. Due to
a delivery-focused approach, operations management is focused on efficiently converting
inputs into outputs. Production and operations management involves the management of
resources needed to produce and distribute goods and services.

The administration of production, manufacturing, and service provision in an organization is a

part of operations management. Operation management is more concerned with streamlining
processes to leverage resources as efficiently as possible. Operations managers require
knowledge about different project management tools to smoothly perform their
responsibilities.

As per production vs operations management, production management mainly focuses on cost

and quality control while operations management looks into how a company can improve
customer satisfaction.

What is Production Management?

Production management is the study of the planning, coordinating, controlling, and guiding of
an organization's production activities. It is associated with the transformation of raw materials
into finished goods as well as the determination of the final product's overall quality. Its
primary goal is to produce goods and services of the appropriate quality and quantity at the
appropriate time and at the lowest possible cost.

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Many people think that production and operations management are one and the same, but they
are in fact two different fields. So, you must understand the difference between production and
operations management.
When you understand "what is product management," you will realize that it is crucial for
organizations to consistently deliver high product quality. It improves the reputation of any
business by offering products and services that meet customer requirements. The efficient
usage of resources prevents the deterioration of the final product and reduces production costs,
which makes the final product available to customers at a lower cost. Moreover, you must learn
about these differences between production vs operations management to make the right
decision.

Uses of Operations Management

Like a product management course, an operations management course offers knowledge about
the relevant processes. The primary uses of operations management are as follows:

1. Strategic planning: Operations management revolves around strategic planning to

ensure maximum utilization of resources.

2. Finance: Operations management is all about ensuring that a business is using capital
resources efficiently during production.

3. Production design: Operations management also revolves around creating product

designs that meet customer needs and abide by market trends.

4. Forecasting: Operations management is also used for predicting how products or

services will perform in the future and how customer requirements will change with
time.

Uses of Production Management

Do you know how product managers are vital for the success of any business? Keep reading to
understand the importance of production management in a business:

1. Production control: The production management process ensures that the correct plan
is used while manufacturing goods and services.

2. Cost and quality control: Production management ensures that customers get high-
quality products at low costs.

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 3. Scheduling: Production management is crucial for formulating the beginning to end of
the production process.

4. Machinery maintenance: Production management ensures that the manufacturing

equipment and machinery are in the best condition without any defects.

Continue reading to learn all the difference between production and operations management.

Production Vs Operations Management

Here are the major distinction between production vs operations management:

Basic for Production Operations Management

comparison Management

Definition It revolves It revolves around the management of complete overall

around business operations, including production and post-
managing all production stages.
production
activities.

Scope of Scope is Broader scope because operations management revolves

Operation limited because around routine business activities like workforce
it focuses on management, inventory management, and more
the design,
pricing,
quality, and
quantity of
goods
production

Objective Ensures that Focused on leveraging organizational resources in the most

the right effective way to meet customer requirements
quality of
products are

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 produced at the
right time

Area of Relevant Relevant for daily business operations in any organization

Decision- specifically for
Making different
aspects of
production

Capital Revolves Less capital requirements.

Requirement around high
capital
requirement
initially

Skills Technical Leadership skills, data entry and processing skills,

Required skills, IT skills, decision-making skills, conflict management skills, and
project organizational skills
management
skills,
communication
skills, and
confidence

Challenges Meeting Development of technology and innovative business

deadlines models pose new challenges to operations managers
without
compromising
quality is a
major
challenge for
production
managers

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 Advantages Delivering Utilization of resources to improve regular business
high quality operations and improving business reputation
products on
time at low
costs

Table 1.1 Production Vs Operations Management

Conclusion

Both production managers and operations managers are crucial parts of an organization aiming
to perfect their manufacturing process. If you want to pursue a career as any one of these
professionals, you must understand the differences between production vs operations
management. Developing the right skills and knowledge is crucial for performing all tasks
associated with production and operations management. So enroll in a relevant course today to
kickstart your career! Understanding the difference between production and operations
management will help you make the right choice.

1.3 PRODUCTIVITY

What is Productivity?

Productivity is a measure of economic performance that compares the amount of goods and
services produced (output) with the amount of inputs used to produce those goods and services.

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 Fig:1.1 Productivity

What Is Productivity?

Productivity, in economics, measures output per unit of input, such as labor, capital, or any
other resource. It is often calculated for the economy as a ratio of gross domestic
product (GDP) to hours worked.

Labor productivity may be further broken down by sector to examine trends in labor growth,
wage levels, and technological improvement. Corporate profits and shareholder returns are
directly linked to productivity growth.

At the corporate level, productivity is a measure of the efficiency of a company's production

process, it is calculated by measuring the number of units produced relative to employee labor
hours or by measuring a company's net sales relative to employee labor hours.

KEY TAKEAWAYS

 Productivity, in economics, measures output per unit of input.

 When productivity fails to grow significantly, it limits potential gains in wages,
corporate profits, and living standards.
 The calculation for productivity is output by a company divided by the units used to
generate that output.
 Auto giant Toyota and online marketplace king Amazon are prime examples of
businesses with an impressive level of productivity.
 Productivity in the workplace refers simply to how much "work" is done over a
specific period of time.

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Understanding Productivity

Productivity is the key source of economic growth and competitiveness.

A country’s ability to improve its standard of living depends almost entirely on its ability to
raise its output per worker (i.e., producing more goods and services for a given number of
hours of work). Economists use productivity growth to model the productive capacity of
economies and determine their capacity utilization rates. This, in turn, is used to forecast
business cycles and predict future levels of GDP growth.

In addition, production capacity and utilization are used to assess demand and inflationary
pressures.

Types of Productivity Measures

Labor Productivity

The most commonly reported productivity measure is labor productivity published by

the Bureau of Labor Statistics. This is based on the ratio of GDP to total hours worked in the
economy. Labor productivity growth comes from increases in the amount of capital available
to each worker (capital deepening), the education and experience of the workforce (labor
composition), and improvements in technology (multi-factor productivity growth).1

However, productivity is not necessarily an indicator of the health of an economy at a given

point in time. For example, in the 2009 recession in the United States, output and hours
worked were both falling while productivity was growing (hours worked were falling faster
than output).2

Gains in productivity can occur both in recessions and in expansions—as it did in the late
1990s—so one needs to take economic context into account when analyzing productivity
data.3

Total Factor Productivity

There are many factors that impact a country’s productivity. Such things include investment
in plant and equipment, innovation, improvements in supply chain logistics, education,
enterprise, and competition.

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The Solow residual, which is usually referred to as total factor productivity, measures the
portion of an economy’s output growth that cannot be attributed to the accumulation of capital
and labor.

It is interpreted as the contribution to economic growth made by managerial, technological,

strategic, and financial innovations.

Also known as multi-factor productivity (MFP), this measure of economic performance

compares the number of goods and services produced to the number of combined inputs used
to produce those goods and services. Inputs can include labor, capital, energy, materials, and
purchased services.4

Capital Productivity

Capital as a productivity measure looks at how efficiently physical capital is being used to
create goods or services. Physical capital includes tangible items, such as office equipment,
labor materials, warehouse supplies, and transportation equipment (cars and trucks).

Capital productivity is calculated by subtracting liabilities from physical capital. You then
divide the sales number by the difference. A higher capital productivity number shows that
physical capital is being used efficiently in the creation of goods and services while a lower
capital productivity number shows the opposite.

Material Productivity

Measuring productivity by materials looks to measure output by the materials consumed.

Materials consumed can be heat, fuel, or chemicals in the process to create a good or service.
It analyzes the output generated per unit of material consumed.

Productivity and Investment

When productivity fails to grow significantly, it limits potential gains in wages, corporate
profits, and living standards. Investment in an economy is equal to the level of savings because
investment has to be financed from savings. Low savings rates can lead to lower investment
rates and lower growth rates for labor productivity and real wages. This is why it is feared that
when savings rates in the U.S. are low, it could hurt productivity growth in the future.

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A big question is what role quantitative easing and zero interest rate policies (ZIRP) have
played in encouraging consumption at the expense of saving and investment. For instance,
during periods of lax monetary policy where credit is accessible and affordable, consumers
are more likely to incur debt and decrease savings in pursuit of mortgages, loans, or other
major purchases. It is only when monetary policy is tightened and rates rise that the economy
encourages saving and ultimately future investment.

Productivity is largely determined by the technologies available and management's

willingness and know-how to make process improvements.

Companies can also choose to spend money on short-term investments and share buybacks
rather than investing in long-term capital. Some economists call for corporate tax reform to
better incentivize investment in manufacturing, infrastructure, or long-term assets. For now,
entities may still pursue long-term investment endeavors to maximize efficiency and
productivity; however, for some, it may be easier and worth more to pursue short-term capital
strategies.

Last, some economists may argue the pre-pandemic society will continue to bolster
productivity growth in the future. The reasoning behind this theory is workers can now focus
more on "higher-value" tasks relying on technology, mobility, and scalability. As more entities
shift away from strictly on-premises operations, greater infrastructure investments are needed
to handle a hybrid or fully-remote entity.

How to Calculate Productivity

The calculation for productivity is straightforward: divide the outputs of a company by the
inputs used to produce that output. The most regularly used input is labor hours, while the
output can be measured in units produced or sales.

For instance, if a factory produced 10,000 widgets last month while being billed for 5,000
hours worth of labor, productivity would simply be two widgets per hour (10,000 / 5,000).

Sales can also be used as a measure of output. For that factory, let's say 10,000 widgets
translates into $1 million dollars in sales. One simply needs to divide the $1 million figure by
5,000 labor hours in order to get the productivity number: $200 in sales for each hour of labor.

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Real-World Example

Auto manufacturing giant Toyota offers a prime example of high-end productivity in real life.
The company has very humble beginnings but has grown to become one of the largest and
most productive car manufacturers in the world. Its "Toyota Production System" (TPS) is one
of the main reasons for that.5

TPS includes a few of the following principles:

 An environment of constant learning and improvement

 Standardizing systems for consistent quality
 The elimination (not just reduction) of waste

By enacting TPS practices into its manufacturing every day, Toyota ensures the company is
continually improving, operating at a high standard, and resources are not being lost.

What Are the 4 Essential Components of Productivity?

Productivity can be looked at in a variety of ways, particularly if one is referring to the

productivity of an individual or of a corporation. For an individual, the four essential
components of productivity include (1) strategy, or the ability to plan, (2) focus, or the ability
to pay attention to one task at a time, (3) productive choosing, or the ability to choose the most
important tasks and make the right choices, and (4) consistency, the ability to work at a
consistent pace and incorporate all of the above in your tasks.

What Is Productivity in the Workplace?

Productivity in the workplace refers simply to how much "work" is done over a specific period
of time. Depending on the nature of the company, the output can be measured by things like
customers acquired, phone calls made, and, of course, sales gained. An overarching goal of a
company should be to maximize productivity without sacrificing product quality and being
efficient with company resources.

How Can You Improve Personal Productivity?

Some basic ways to increase personal productivity on a daily basis include:

 Listing tasks in order of importance and tackling them one by one

 Completing your most hated tasks before all the others

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  Taking well-calculated breaks to boost overall production
 Exercising regularly
 Eating a healthy diet

What Factors Affect Productivity?

In the workplace, factors that affect productivity include compensation (salary/wage), work
environment, training, career development opportunities, wellness, diversity, increased
responsibility, and management quality.

How Do You Show Productivity at Work?

Ways to show productivity at work are setting goals, focusing on one task at a time, meeting
deadlines, being on time, taking breaks, focusing on the largest tasks first, blocking out your
calendar, having productive meetings, and delegating tasks.

The Bottom Line

The concept of productivity is simple: at a given level of input, there is a given level of output.
More productive societies and processes will yield more output at the same level of input.

Whether it is viewed from an economic standpoint, company standpoint, or personal

standpoint, being able to measure and track productivity can be crucial to long-term success.

1.4 WORK STUDY

Meaning of Work Study:

Work study is the investigation, by means of a consistent system of the work done in an
organization in order to attain the best utilisation of resources i.e. Materials, Machines, Men
and Money. All the technologies and management systems are related with productivity.

Work study is one of the basic techniques of improving productivity. In order to resolve
this aspect, work study aims:
(i) To analyse the work in order to achieve work simplification and thereby improving
productivity of the system.

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(ii) To have optimum utilization of resources i.e., 4 Ms.

(iii) To evaluate the work content through work measurement.

(iv) To set time standards for various jobs.

In nutshell work study is mainly concerned with the examination of human work. In fact
planning is not possible unless one knows how long it will take to do a particular job. Thus
time is very important to the manufacturer who must keep to promise, to estimate quantities
and to other industrial and business arrangements or organizations.

Work study is not a theoretical concept but essentially a practical one and deals with human
beings who have their own attitude and style of working. So the success of work study is
dependent upon the relations between the labour/employees and the management.

Work study involves lot of changes in various working methods. Since the manpower in
general does not like changes but prefers to continue as already doing, so there will always be
a tendency to resist any modification or new method suggested by work study people
(officers/workers) and the manpower and the workers have confidence in the ability, integrity
and fair-mindedness of work study man, there is a good chance that sound proposals will be
accepted willingly by the manpower.

Definition and Concept of Work Study:

Generally work study is used to describe a complete set of techniques with the help of which
work can be simplified, standardized and measured.

When it is possible to simplify the existing work or new methods are designed and
introduced such that the task/activity becomes simpler than following advantages are
possible:
(i) More production with less effort so goods/products are available at cheaper rates.

(ii) Better equipment utilization shall lead to marked increase in the total production without
addition of new resources, thus productivity may improve. These advantages are possible
through the willing cooperation of the people engaged in production work. In view of these far
reaching benefits, work study has become an important tool of management.

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In industries work study is considered as a tool of improving productivity by way of:
(i) Resource utilization to a satisfactory level.

(ii) Capital investment to introduce latest technology.

(iii) Better management of the system.

I. British Standard Institution defines work study as a generic term for those techniques
particularly “Method study” and “Work Measurement” which are used in the examination of
work in all its contexts and which leads systematically to the investigation of all the factors
which affect the efficiency and economy of the situation being reviewed in order to incorporate
improvements at various levels.

II. Work study may be defined as “The systematic critical, objective and imaginative
examination of all factors governing the operational efficiency of any specific activity in order
to achieve/ effect improvement.”

Thus work study is the investigation by means of a consistent system of the work done in an
organization in order to achieve the best possible utilization of resources i.e. man, machines
and materials available. Every organization tries to achieve best quality production of various
products in the minimum possible time.

The time required manufacturing a product/item depends on the manufacturing procedure. One
phase of work study called Method Study or Motion Study aims at determining the best
possible manufacturing procedure which involves least time and cause minimum fatigue to
workers employed for performing the work.

In short method study is concerned with determination of the best way of doing a job. Method
study may be defined as the systematic investigation of the existing method of doing a job in
order to develop and install an easy, quick, effective, efficient and comparatively less tiring
method or procedure for doing the same job at cheaper rates.

This is generally achieved by eliminating unnecessary movements or motions involved in a

certain procedure or by changing the sequence of the operation of the process itself The role of
time study or work measurement starts with the determination of the time allowed to complete
the job by the developed improved procedure for doing that job. Thus work measurement may

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be defined as the application of different techniques to measure and establish the time required
to complete the job by a qualified worker at a defined level of performance.

Need For Work Study:

Principles of work study have been used since long to identify the improvements to be
incorporated, when industrial set up was simple and involved lesser problems. The industries
of today with increased complexities and modernisation naturally demand a more systematic
approach like work study in its present form for solution of various problems.

Work study is most valuable tool of management because:

(i) It is a direct means of improving productivity of the system involving very less or no cost.

(ii) The approach is simple, systematic, consistent and based on handling of facts. Thus the part
played by opinions in taking decisions is minimized.

(iii) No factor affecting the efficiency of operation is overlooked in this approach.

(iv) It provides most accurate means of setting standards of performance which are helpful in
the process of production planning and control.

(v) Application of work study result in immediate savings.

vi) It is a universal tool for management.

(vii) It is a most penetrating tool of investigation available to the management of the industrial
unit.

Techniques of Work Study:

Basically there are two techniques:

Method study and work measurement as shown in Fig. 17.1.

Thus work study is the term used to embrace the techniques of Method Study and Work
Measurement which are used to ensure the best utilization of manpower and material resources
in carrying out specified activity.

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The sequential order of the correct procedure to be adopted for having effective or
purpose oriented results of method study include the following:
(i) Select the work/procedure to be analysed.

(ii) Record all the relevant information related with the existing work system with the help of
various recording devices or techniques.

Fig 1.2: Work Study

(iii) Make critical examination of collected data/facts.

(iv) Develop and improve the method which is economical and practical after giving due
consideration to the alternative method possible.

(v) Install the new selected method with proper instructions.

(vi) Maintain the latest standards of methods through periodic verification etc.

Similarly, the logical order of correct procedure to be adopted for having effective results
of work measurement includes the followings:
(i) Divide the selected procedure into small work elements.

(ii) By direct observations record the relevant information regarding the various work elements.

(iii) In the light of relevant information examine the work critically.

(iv) Measure the work content in the terms of time of the work elements involved in method
being adopted.

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(v) Define and design the new selected method.

(vi) Finally convert the work content time in standard time.

Objectives of Method Study:

Some important objectives of method study are:
(1) Better design of plant equipment and buildings.

(2) Less fatigue or workers by avoiding unnecessary movements of manpower.

(3) Better working conditions and environment for workers/employees.

(4) To have more effective utilisation of materials, machines and manpower and money.

(5) Better Product quality.

(6) Efficient and fast material handling equipment.

(7) Leads to standardisation, rationalisation, simplification and specialisation.

(8) Efficient planning of the section.

(9) Streamlined working procedures.

Objectives of Work Measurement:

Effective planning and control of production, distribution and administration can not be
achieved unless these are based on facts. One of the most important of these facts is the time
required for job completion which can be obtained by motion study or work measurement.

Other objectives of work measurement are as follows:

(1) When two alternative methods which seem equally advantageous, one which requires less
time for completion of the job (i.e. faster) can be established.

(2) The man power required for a job or new plant can be determined on the basis of accurate
knowledge of the amount of work that has to be done so it helps in manpower economy.

(3) Work measurement data provides reliable basis to decide equipment.

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(4) Provides requisite information for effective production planning and improving efficiency
of the system.

(5) Provides basis for fair and reliable incentive schemes.

(6) Decides realistic labour budgeting and provides a basis for standard costing system.

Advantages of Work Study:

(1) It is direct means of improving productivity.

(2) It results in uniform and improved production flow.

(3) It reduces the manufacturing cost.

(4) With its help fast and accurate delivery dates are possible.

(5) It provides better service and consumer satisfaction.

(6) It improves employee-employer relations.

(7) It provides job satisfaction and job security to workers.

(8) Better working conditions are possible for workers.

(9) It is most important tool of analysis and can help in providing better wages to workers on
scientific basis.

(10) Most accurate method and yet provides a sound basis for production planning, control and
incentives for man power.

(11) Everyone concerned with industries is benefited from it such as worker, consumer and
management of the unit.

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 1.5 PRODUCTIVITY MEASUREMENT

Productivity is central to your organization’s success. Measuring productivity can help keep
your team on track to reach their goals.

Your team works hard to keep your projects moving and your organization profitable. But are
there ways you can improve your team’s workflow and do even more in the same amount of
time? Measuring your team’s productivity can give you the answer. Below are four types of
productivity measures to help you assess your team’s productivity, keep everyone on track, and
maximize your profits.

 What are productivity measures?

 4 types of productivity measures

 How to use productivity measures in the workplace
 Why is measuring productivity important?

What are productivity measures?

Productivity measures are metrics that track your team’s efficiency in accomplishing their
tasks. They can help you manage your team’s performance and figure out where everyone can
improve.

Productivity measures compare the resources – time, tools, energy – your team uses to the
amount of work they do. From there, you can figure out whether your team is making the most
of their time and resources.

Foster productivity

Reap the benefits of productive employees by giving regular feedback. Try a tool like Fellow
today!

TYPES OF PRODUCTIVITY MEASURES

There are a few different measures you can use to assess your team’s productivity. Each one
looks at different factors in the big, complex wheel of getting from the starting point to the
finish line. Below are four types of productivity measures.

 Capital productivity

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  Material productivity

 Labor productivity

 Total factor productivity

1Capital productivity

Capital productivity measures how well your team is using physical capital to produce goods
or services. Physical capital includes human-made items such as labor materials, warehouse
supplies, computers, and vehicles. It’s basically anything tangible that you use to make your
products.

To calculate capital productivity, you subtract your liabilities (debts and expenses) from your
physical capital. You then take that number and divide your sales by it. The result is your
capital productivity. The higher the number, the better – that means your tools are letting you
sell enough to do well. To increase this number, you can upgrade your physical capital (or get
more of it) or decrease your liabilities.

2Material productivity

If your organization provides services instead of products, material productivity might be your
go-to productivity measure. It’s similar to capital productivity, but instead of looking at
physical capital, it looks at materials.

You’ll also see materials called “natural resources” – which, here, doesn’t mean water and land
– or “raw material.” To figure out your team’s material productivity, use the capital
productivity formula but replace physical capital with natural resources.

3Labor productivity

Labor productivity can help you see whether each team member is being productive enough.
This type of productivity is the ratio of output per person. It compares the value of your team’s
products to how much time your team needed to get the product to market. To calculate it,
divide the value of your goods or services by how many hours your team took to make them.

4Total factor productivity

Total factor productivity is what experts call a “multifactor” productivity measure. Here,
“factors” go beyond the usual workplace nets – capital, material, labor productivity, things like

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that. They also include your management style, knowledge, and organizational structures – and
how they affect your output.

To get to your team’s total factor productivity, divide the value of all your products by the
weighted-average value of all the factors. Sounds like a bit much? Here it is in plain English:
To calculate total factor productivity, you’ll need to determine the importance of everything
that goes into your processes. Knowledge, workflows, and really anything else can come into
play here.

That said, there are a few simple formulas that make it easy to figure out your total factor
productivity. One of the most popular ones is the Cobb-Douglas function. But it can get wild
pretty quickly since it can include so many different factors. There’s really no ceiling to how
many factors you include – the only limit is how far you’re willing to go.

How to use productivity measures in the workplace

Since there’s more than one way to measure productivity, there’s more than one way to use
productivity measures for your team. Below, you’ll find some of the simplest ones.

 Time tracking
 Simple productivity output calculation
 Measuring efficiency
 360-degree feedback

1 Time tracking

If your team is working remotely, you might find it tough to keep up with each person’s work,
let alone all their “factors.” Tracking your team’s time – and how they spend it – can be a great
solution.

To start, you’ll need a time tracking tool that goes really deep on how each of your team
members is spending their time. For example, Monitask, an employee monitoring
software, integrates seamlessly with Fellow and records your team members’ time entries,
activity levels, and internet usage. From there, you can see the average amount of time your
team members need for their work. You can use those numbers as a baseline for their
productivity levels.

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 Fig :1.3 productivity measures in the workplace

2 Simple productivity output calculation

Simple productivity output calculations are best for assessing the basic products or services
your team members have brought into the world. They mainly apply to labor productivity since
they only include a few factors.

To start, pick an output figure – say, the value of everything your team produced last week. For
example, maybe your team designed two websites worth a total of $7,000. You’ll then need to
tally the number of hours your team put into creating the websites.

Let’s say that, collectively, your team spent 150 hours working on the websites. Now, you’ll
divide the output ($7,000) by the input (150 hours) to see how much money your team made
per hour. In this case, you’ll come up with $47 per hour, which is your team’s labor
productivity.

3 Measuring efficiency

Though similar, productivity and efficiency aren’t identical twins. Where productivity looks at
quantity, efficiency is more about quality. That’s why measuring your team’s
efficiency and productivity is the best way to make the best of your team’s performance across
the board.

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To calculate your team’s efficiency, start with the usual number of hours it takes to get a
product or service 100% ready. You’ll then note the number of hours your team took to finish
the job. Finally, divide your usual labor hours by the actual hours worked. Multiply that result
by 100 percent to get your team’s efficiency percentage.

4 360-degree feedback

If formulas and math aren’t your friend, you can skip the equations entirely and just listen to
what everyone has to say. This 360-degree feedback gives everyone a chance to chime in about
the team’s overall productivity.

To start, give your team members instructions on how to properly share feedback about their
teammates. Give them clear factors to consider, such as time management and task
prioritization. You should also make sure everyone knows who’s actually responsible for what
so their feedback is fair.

You can then ask your team members to give feedback on all their teammates – managers and
leaders are on this boat too. To help you get the best feedback possible, Fellow includes pre-
built templates and smart suggestions for asking for and reviewing peer feedback. This way,
you can easily keep up with everyone’s responses and share your own thoughts. You can use
all this feedback to get a holistic view of your team’s performance from all sides.

Fig 1.4: 360-degree feedback

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Why is measuring productivity important?

Your team’s productivity is a big part of your organization’s success. The higher your
productivity, the better your team is using everything in its court to get results. Measuring your
team’s productivity is important for so many reasons, including the five below.

 Achieve more in less time

 Higher revenue using fewer resources

 See whether you’re meeting targets

 Help with scheduling projects

 See if everyone is pulling their weight

1 Achieve more in less time

Think about the times you’ve said, “Wow, I had a productive day today.” You probably
scratched more items than usual off your to-do list on those days. That’s the essence of
productivity – it’s all about achieving as much work as possible within a certain time frame.
Regularly assessing your team’s productivity can help everyone make the most of their
workdays – and point out problems while hinting at how to fix them.

2 Higher revenue using fewer resources

The more work your team does, the more your organization can put on the market. When you
measure your team’s productivity, you can pinpoint areas where your team might be wasting
resources. Once you correct that, you can create more from less. That’s better for both your
team and your bottom line.

3 See whether you’re meeting targets

You have big goals for your organization – and big plans for how to reach them. But how do
you know how close your team is to the finish line without any idea of their current status?
When you measure your team’s productivity, you can see exactly how much everyone is doing
– and how close they are to crushing their goals.

4 Help with scheduling projects

Once you know how much work your team can do in a certain amount of time, you can way
more easily schedule and plan projects. You’ll have a good idea of the load your team can
carry, so you can set realistic expectations. You can set deadlines that fit your team’s abilities
and stand a better chance of keeping your projects on track.

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5 See if everyone is pulling their weight

Measuring your labor productivity can give you a clear view of how your team is performing.
You’ll know your team’s average productivity levels, so you can easily pinpoint team members
who are struggling to keep up with everyone else. From there, you can make a plan for
productivity improvement and take a major step toward doing more.

Making room for productivity

You and your team can do amazing things – and maybe you can do more of them too. Knowing
your team members’ productivity can help you make the most of their time and resources.
Whether you do math or get everyone’s feedback, productivity measures can help you make
the most of all your resources – and all your best minds.

1.6 FACTORS AFFECTING PRODUCTIVITY

Fig 1.5: factors affecting productivity

The various decisions with respect to the factors are mentioned below:

1. Man Power:

Selection i.e. selection of right man for a specific job Applying well known saying division of
labour. Training i.e. consideration of training requirements whether to be imparted training in
the plant itself or to be sent for training outside the unit to other plants within the country or

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abroad or training institutes. Number of personnel required i.e. man power requirement
planning in each of the departments of required skill.

2. Equipment and Machines:

The number of machine tools, their capacity and accessories required, replacement policy of
the organization and maintenance schedules etc.

3. Input Materials:

i. Appropriate quality of materials

ii. Material requirement planning (M.R.P.)

iii. Substitute of materials being used

iv. Inspection of input materials at various points

v. Cost of materials procurement and handling up to stores.

4. Time:

Time is significant for the following reasons:

i. Inspection of input materials i.e. raw material and semi-finished or finished items required
for assembly.

ii. Time for inspection of finished products.

iii. Production time (total time of manufacturing).

iv. Time for repair and maintenance of machines and equipment.

5. Floor Area or Space:

i. Total area covered by the administrative block, production shop and inspection & quality
control departments etc.

ii. Location of different departments and shops etc.

iii. Other space covered by plant layout.

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6. Power or Energy:

i. Maintenance of equipment for saving energy

ii. Use of renewable energy devices

iii. Use of biogas, photovoltaic cells, solar energy and other non-conventional techniques.

7. Finance:

Finance is required to maintain all the above requirements. The management should be for
minimum rather optimum finance.

8. Movement of Man and Materials:

i. The required motion of manpower within the plant

ii. The motion of raw material semi-finished and finished products/items within the plant.

6 Factors affecting Productivity

Did you know that 85% of employees [1] worldwide don't feel engaged at work? Many times, this
says more about the employer than the employee. In today's article, we're going to explore why
that is, as we go through several crucial factors that affect workplace productivity and engagement.

What Is Employee Productivity?

Employee productivity refers to the economic performance that compares the number of goods
and services produced (OUTPUT) to the amount of work (INPUT) used to produce the goods and
services. Productivity depends on many factors. Here are several factors that play a significant
role in employee productivity and, in turn, business results.

Factors That Affect Productivity

There are many barriers to productivity in the workplace. We’ve highlighted some of the most
common organizational barriers to productivity.

1. Work Environment

As you can imagine, no one enjoys working in a negative or toxic environment. Make sure to
create a workplace atmosphere that is based on your company's values, where your employees
feel supported, valued, and safe.

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Put honesty and co-operation first, remember to reward your employees when they deserve it.
Give your employees access to the right environment where they can cooperate, compete, and
emphasize with their co-workers. This type of environment helps your employees develop healthy
work habits, which contributes to creating a productive workforce.

2. Training & Career Development Opportunities

Every employee wants to grow in their career, so it's essential that they feel like their employer is
invested in their professional development and provides them with the relevant training
opportunities throughout their journey in the company.

If you don't have a training program yet, it might be time for you to develop one. An untrained
employee would not know what they need to do or how to do it more efficiently, which can
negatively affect productivity.

One good way of facilitating training programs is through micro-learning. This human resources
tool gives your new employees the information they need and the knowledge they need to thrive
in the office.

Plus, make sure each team member has a chance to grow within the company hierarchy, and won't
end up feeling stuck in the same position for too long.

3. Processes

From recruiting to onboarding, compensation, performance management, task delegation and

more: establishing processes for your company will allow you to provide your employees with
positive experiences from the get-go.

Developing these processes can be time-consuming and it is very much a matter of trial and error.
However, once you have them, you'll be a lot more organized and efficient - and so will the rest
of the team.

Companies with high productivity levels build processes for most of their recurring tasks and
projects.

For example, many organizations often overlook employee surveys. This can lead to workers
feeling neglected and unseen, which can negatively affect employee productivity. However,
implementing a project management tool can help your HR managers facilitate job satisfaction
surveys easily.

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Another example is employee offboarding. When a worker leaves, many managers often forget
to revoke the worker's platform access, which can lead to data privacy issues. With an employee
and project management tool, your HR personnel can easily remove the outgoing employee's
ability to access confidential information and company tools with a few clicks. This makes it easier
for your HR department to off board an employee, as well as increase employee's productivity as
it allows them to focus their time on another particular task.

4. Pay Structure

Your employees have bills to pay, children to take care of, and goals to accomplish, and the
monetary benefits are obviously one of the reasons why they took a job in your company.

Use this as a motivational tool, by explaining clearly and transparently how your pay structure
works and what you consider when deciding if an employee deserves a promotion and raise.

5. Employee Wellness

Employee wellness has become a popular topic over the past few years, and it refers to the physical
and mental health of your team members.

As an employer, you want to provide your employees with all the tools and resources they might
need whenever they don't feel their best, as doing so will show them that you care and also prevent
small problems from developing into something more serious.

Creating a wellness program, offering healthy food options at the office cafeteria, and encouraging
your workers to put their welfare first help create a healthy and happy employee and could greatly
boost employee productivity.

Another way your company can have a positive impact on employees productivity levels is by
encouraging workers to lead a healthier lifestyle. This can be done by giving them access to
physical activities that encourage them to get off their seats and move. You can also propose them
to have a "walk to work" day or give them more storage spaces to store their office equipment.

6. Diversity

Multi-culture is now more important than ever and it has certainly become an important factor
when it comes to employee engagement.

Having diversity in your workplace is one key factor in increasing employee productivity and
benefitting your company's success. Recruiting representatives with distinctive qualities,

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religions, cultures and customs gives your employees a sense of belonging in their working
environment.

Another advantage of having workplace diversity is that it gives employees an opportunity to learn
and understand others' perspectives. This plays a vital role in ensuring strong team dynamics.

Make sure you give everyone equal opportunities, no matter what their culture, religion, ethnicity,
gender, or sexuality are, and that will reflect on your employee satisfaction and productivity. Plus,
with such a varied pool of talent within your company, you'll have access to a wider range of
skills, which can lead your profits to increase significantly.

Do note that diversity in the workplace is not only limited to companies that work in a physical
location. Having diverse team members can also greatly affect productivity and job satisfaction in
remote teams.

Giving your stressed employees the chance to take a quick breather is vital in combatting low
productivity. Remember, a happy and healthy employee is more likely to have enough physical
and mental resources to achieve their desired outcomes.

7. Technology and Production Factors

Technology has become an integral part of a modern working environment. Companies that utilize
modern technology tend to be more profitable as it helps support employees in their tasks,
especially when the job involved technical factors.

For example, installing an AI-fueled business telephone framework allows your employees to
have smooth business interchanges between different departments. It also eliminates the need for
them to go back and forth over one topic, giving them the opportunity of managing time wisely
and focus on completing other tasks.

Companies that refuse to utilize modern technology risk employee burnout, which would greatly
affect productivity.

8. Tools

Giving your employees the correct tools directly impact productivity in the workplace. Untrained
employees could delay the work and mismanage resources, which could cost the company. Poor
management techniques and a lack of access to important tools lead to employee disengagement,
which can decrease individual production performance, efficiency levels, and overall productivity
in the work environment.

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9. Workplace Ergonomics

Apart from organizational factor, there are also other factors in the work environment that can
decrease or increase productivity. While these aren't included in the main factors, it still affects
individual productivity.

Factors that may lead to low productivity include:

 Temperature at the workplace

 Air quality
 Poor Lighting
 Hydration
 Office Space Layout and Design

The Cost Of Disengaged Employees

A company where multiple employees don't feel engaged, involved, and productive is a company
where there's something missing. Something so crucial that it ends up having a major impact on
the team's motivation and, ultimately, on the business's finances - a disengaged employee can cost
a company nearly US$16,000 [2] per year!

Knowing this, it becomes clear why it is pivotal for employers to understand what exactly affects
employee engagement and, more importantly, what they can do to decrease absenteeism and
their employee turnover rate while boosting productivity, dedication, and motivation.

In Conclusion

Employee productivity plays a large part in ensuring your business' success. Your workers are the
life blood of your company, so it makes sense to spend time and money investing in various
components that help increase your employees' productivity.

Without a strong, productive team that feels engaged every single day they walk into the office,
your company wouldn't be able to go far, and reaching all your established goals would be a lot
harder. As such, it is your responsibility, either as a business owner or HR professional, to make
sure your employees feel engaged and have everything they need to produce the best results they
possibly can.

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1.7 PRODUCTION TECHNOLOGY

In the simplest sense, to define production technology would be to include any machinery that
makes creating a tangible physical product possible for a business. To the small business, this
means a workshop at the very least, with more elaborate operations making use of machines
and assembly lines. Choosing a production scale model within a company's capital means is
important; simpler workshops tend to lead to lower production volume but cost less to
assemble, while higher output operations require more complex and costly machines, which
are sometimes cost prohibitive.

The Modern Artisan Workshop

The artisan workshop represents the basic minimum effective level of modern production
technology. An artisan workshop builds upon the traditional workshops of craftsmen from
before the industrial revolution and replaces most of the simple hand tools used with time-
saving electrically driven tools. These tools offer the skilled tradesperson the advantage he
needs in order to more quickly produce goods to the same level of quality he would otherwise
make with hand tools. The table saw, drill press and belt sander are all examples of modern
variations on simple hand tools used to save the modern craftsman time. Artisan workshops
focus on low or medium output of higher than average quality goods to maintain a competitive
advantage over large-scale factory-produced items of similar type.

CNC Machining and Extending the Artisan Workshop

A computer number-controlled or CNC machine – also referred to as computer-aided

manufacturing – further extends the capability of an artisan workshop, allowing the skilled
craftsman to program the device to perform highly detailed repetitive tasks such as router and
drill operation. CNC machines are expensive investments; however, when used to address the
more time-consuming steps of producing an item in the standard artisan workshop, they can
significantly improve the overall profitability of that manufacturing business. Because of their
high initial cost when compared to manually operated shop tools, CNC machines are generally
unavailable to all but the most successful small business. Investing in production engineering
equipment like CNC machine is a pivotal decision for a small business and should be done
with careful consideration of how much the machine will actually boost profits when compared
to continuing with the manual method.

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Automated Assembly Line-Style Mass Production

Automated assembly-line mass production represents the apex of modern industrial

production, and is the driving force behind industrial titans such as automobile manufacturers
and the makers of household appliances. The higher the degree of mechanization and use of
robotics in the assembly line process, the fewer human workers are required to produce a
product; however, in replacing human laborers with robots, the initial investment cost rises
dramatically. The extremely high initial cost of automated assembly line mass production
places such production methods far beyond the grasp of small business owners as far as
practicality is concerned. Maintaining advanced automated assembly lines also requires the
professional services of highly skilled robotics technicians, again making practical
implementation difficult for the small business owner.

Practicality Considerations for Small Business

When it comes to investing in production technology, a small business's focus should be on

generating the best dollar return on capital investment within the confines of the company's
reasonable budget. The IRS states that small businesses are a success when they generate profit
at least three out of every five years. This general rule means that for the small business person,
if it takes more than two years to pay off the initial capital investment in production technology,
the businesses likely exceeded its ideal maximum production technology budget. This doesn't
mean that smaller to medium businesses have to abandon advanced production methods
entirely; instead, they can adapt some practices from larger-scale industry that suit their own
needs and capabilities. For example, small and medium businesses looking to capitalize upon
the mass production method of industrial manufacturing can take a page out of Henry Ford's
book and use a simple conveyor belt line along with labor division to simplify and speed up
the production process while still using artisan shop-style manually operated tools.

1.7.1 types of manufacturing processes

6 Types of Manufacturing Processes

Manufacturing is the making of goods, from televisions and automobiles to guitars and
clothing. There are several standard manufacturing processes applied across industries, and
companies can vary which they use or tailor productions to design and business needs. In this
article, we explore what a manufacturing process is and discuss the different processes, how to
use them and the advantages of each.

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What is a manufacturing process?

A manufacturing process is how a company builds or creates a product. It can be a complex

activity that involves a range of machinery, tools and equipment with many levels of
automation using computers, robots and cloud-based technology.

A business establishes its own manufacturing process to produce goods specifically for its
customers. A company decides which production method to choose based on factors such as
consumer demand, sales forecasts, the assembly technique, materials involved and what
resources are available. For example, you might choose to make a product in bulk batches while
a certain ingredient is in stock or on sale, or in smaller numbers to fulfill customer orders
without having additional storage costs.

Many of today's manufacturing processes date back to the Industrial Revolution of the 1800s,
which took industry from man-made to man-and-machine-made, and as technology advances,
processes get easier to understand and follow. Each approach is unique with certain advantages
to complete a specific task, and there are sub-sectors within the industry such as food, apparel,
chemical or electronic manufacturing.

Six types of manufacturing processes

Depending on your type of business or product, one manufacturing process might work better
than another for your company. Here are six types of manufacturing processes used in
industries worldwide today:

Job shop manufacturing

Job shop manufacturing uses production areas instead of an assembly line and is most often
used for small-batch, custom products that are made-to-order for certain clients or customers.
These workstations might focus on one particular product or a handful of them, like a custom
shoemaker or commercial printing press, and easily offer the ability to customize the final
product. Many machine shops also use this type of manufacturing to make local industrial
machinery, ship components or specialized parts for the aviation industry.

With advances in technology, some of these sites may use job shop manufacturing software,
which helps manage workflow and production. To scale volume for higher production rates, a

39
business might benefit from moving from job shop manufacturing to repetitive manufacturing,
which allows for more automation and fewer people.

Repetitive manufacturing

Repetitive manufacturing is appropriate when making repeat production at a committed

production rate. This manufacturing process has dedicated production lines all working on the
same product or component all day, every day year-round. Because there is such little
changeover and setup, you can match operation speeds to customer demand or client
requirements to make more or fewer items.

Many companies that make electronic goods, automobiles or durable consumer goods like
refrigerators and clothes dryers use the repetitive manufacturing process.

Discrete manufacturing

Discrete manufacturing uses an assembly or production line, though it is much more diverse
than repetitive manufacturing and allows for more frequent changeover and variation. A
company can have multiple styles, sizes or modifications for a product with discrete
manufacturing, though it often means production can take longer because of extra setup or
removal as necessary.

Automobile and aircraft makers use the discrete manufacturing process, along with many
companies who produce clothing, medical devices, toys and smartphones.

Batch process manufacturing

Batch process manufacturing shares similarities with discrete and job shop manufacturing
processes, driven by customer demand or the availability of ingredients and raw materials. One
manufacturing run might produce a batch enough to fill client needs, so you finish production,
clean the equipment, and resume when you need another batch.

Food production, newspaper printing, bookbinding, and pharmaceuticals often rely on batch
process manufacturing.

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Continuous process manufacturing

Continuous process manufacturing runs all the time like repetitive manufacturing. The
difference is this process focuses on raw materials that are often gases, powders, liquids or
slurry.

Oil refining, metal smelting, paper production and some food products like tomato sauce, juice
and peanut butter use continuous process manufacturing.

3D printing

Many in the industry now recognize 3D printing as a sixth manufacturing process with
widespread use. Developed in the 1980s, 3D printing uses various composites and materials
like plastics and metals to make three-dimensional goods layer by layer based on a digital
model, rather than using physical labor or mechanization. There has been an enormous
expansion in this field, with dozens of equipment manufacturers and hundreds of thousands of
3D-printed items already on the market.

While 3D printing can be expensive, it also offers the potential to reduce financial capital, raw
materials and waste and lets companies create and test products before committing to them on
a larger scale. This growing manufacturing process is already being used for products such as:

 Medical and dental devices

 Prosthetic limbs
 Firearms
 Shoes
 Musical instruments
 Buildings

Other types of manufacturing processes

Traditional types of manufacturing styles also include:

Machining

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Machining uses power-driven tools to shape solid materials and metals by removing extra
materials from the piece, usually by trimming. Machining is the foundation of the industry and
includes things such as presses, chip-making tools and modern machinery.

Joining

Joint patterns consider load factors, assembly performance, upkeep and operations. Bolting is
a standard fastening method while welding is more cost-effective and reduces excess weight,
because it doesn't require overlapping materials, fasteners or mounted parts in between.

Forming

Metal forming bends, spins or stretches using a metal press, die or punching tools. Forming is
expensive, though you can reuse equipment by changing the dies.

Casting

Casting involves a solid dissolving into a liquid when heated and poured into a mold or cavity.
Casting can create complex or simple shapes from any kind of meltable metal with a wide
option for designs.

1.8 SUMMARY

 Operations management is a field of management involved with supervising,

intriguing, and controlling the technique of creation of goods and re-
conspiring business operations in the creation of products or services.
 Production management is the study of the planning, coordinating, controlling, and
guiding of an organization's production activities.
 Productivity is a measure of economic performance that compares the amount of goods
and services produced (output) with the amount of inputs used to produce those goods
and services.
 Casting involves a solid dissolving into a liquid when heated and poured into a mold or
cavity. Casting can create complex or simple shapes from any kind of meltable metal
with a wide option for designs.

42
  Many of today's manufacturing processes date back to the Industrial Revolution of the
1800s, which took industry from man-made to man-and-machine-made, and as
technology advances, processes get easier to understand and follow.
 Each approach is unique with certain advantages to complete a specific task, and there
are sub-sectors within the industry such as food, apparel, chemical or electronic
manufacturing.

1.9 KEYWORD

 Operations management is a field of management involved with supervising, intriguing,

and controlling the technique of creation of goods and re-conspiring business operations in
the creation of products or services.
 Production management is the study of the planning, coordinating, controlling, and
guiding of an organization's production activities.
 Productivity is a measure of economic performance that compares the amount of goods
and services produced (output) with the amount of inputs used to produce those goods and
services.
 Labour Productivity: Is the ration of GDP to the total hours worked in the economy.
 Capital as a productivity measure looks at how efficiently physical capital is being used
to create goods or services.
 Productivity in the workplace refers simply to how much "work" is done over a specific
period of time.
 Work study is the investigation, by means of a consistent system of the work done in an
organization in order to attain the best utilisation of resources i.e. Materials, Machines, Men
and Money. All the technologies and management systems are related with productivity.

1.10 LEARNING ACTIVITY

1. Define work study. How is it useful?

___________________________________________________________________________
___________________________________________________________________________

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 2. Explain the manufacturing processes that you have seen.

___________________________________________________________________________
___________________________________________________________________________

1.11 UNIT END QUESTIONS

A. Descriptive Questions

Short Questions

1. What is meant by productivity?

2. What is meant by quality?
3. What is meant by operations management?
4. What is meant by production management?
5. Mention the formula used to find out productivity.
6. State the four essential components of productivity.
7. What is meant by work study?

Long Questions

1. Distinguish between production and operations management.

2. State the uses of production and operations management.
3. How can one improve personal productivity?
4. Describe the factors that affect productivity.
5. Why is work study needed?
6. Explain the use of productivity at workplace.
7. Enumerate with example types of manufacturing processes.

B. Multiple Choice Questions

1. ______________ is a field of management involved with supervising, intriguing, and

controlling the technique of creation of goods and re-conspiring business operations in the
creation of products or services.

a. Operations Management
b. HRM
c. SCM
d. FM

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2. _______________ is the study of the planning, coordinating, controlling, and guiding of an
organization's production activities Men
a. Operations Management
b. Production Management
c. Financial Management
d. HRM

3. _______________ refers simply to how much "work" is done over a specific period of time.

a. Labour productivity
b. Material productivity
c. Productivity in the workplace
d. Personal productivity
4. ________________ is the investigation, by means of a consistent system of the work done
in an organization in order to attain the best utilisation of resources i.e. Materials, Machines,
Men and Money.
a. Method study
b. Work measurement
c. Exam study
d. Work study

5. ____________ as a productivity measure looks at how efficiently physical capital is being

used to create goods or services.

a. Capital
b. Material
c. Men
d. Measurement

Answers: 1-a, 2-b, 3-c. 4-d, 5-a

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1.12 REFERENCES

References books

 Bowersox, J. & Closs, D. (1996). “Logistical Managment”. Tata McGraw Hill

pulications.
 Janat S. (2009). “Supply Chain Management: Texts and Cases”. Pearson. 7 th Floor,
Knowledge Boulevard, A-8(A), Sector – 62, Noida – 201309, U.P., India.
 Martin C. (2005). “Logistics and Supply Chain Management – Creating Value-Adding
Networks”. FT Prentice Hall. An imprint of Pearson Education.
 Monezka, H. & Patterson, G. (2017). “Sourcing and Supply Chain Management”.
Cengage Learning India Pvt. Limited.
 Monezka, R. Trent, R. & Handfield, R. (2002). “Purchasing and Supply Chain
Management”. Thomson Publishers.
 Shridhara Bhat. K. (2009). “Logistics and Supply Chain Management”. Himalaya
Publishing House, “Ramdoot” Dr. Bhalerao Marg, Girgaon, Mumbai – 400004.
Textbook references
 Nitin. K. (2018). “Logistics and Supply Chain Management”. Vipul Prakashan.
 Shridara Bhat. K. (2018). “Logistics and Supply Chain Management”. Himalaya
Publishing House.
Website

 https//www.jaggaer.com

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