Definition, classification, improve industrial Productivity

in this article we will discuss about the relation between output and input in industry. we will also see the relationship between man and industrial productivity. how we can improve our industry productivity using different type role of productivity. moreover we will also check which method we can adopted for increase the productivity or accuracy of industry.

Definition of Industrial Productivity:

It is measurement the efficiency of production. Basically, it is the relationship between the amount of output and the amount of inputs used to make the product goods. in other words, It is ratio of output to input.

$$Productivity= \frac{output}{input}$$

Productive system converts various properties or resources of raw material to produce goods and services.


There are many forms of input like:

  • Land
  • Equipment
  • Men
  • Material
  • Energy
  • Capital
  • Technical information


Output maybe in form of:

  • Materials
  • Product
  • Service

Man role in industrial productivity:

Above all, Technology knowledge shows that productive output per person may be increased resulting into greater gross domestic product (GDP). So, prosperity is linked between production per man or the productivity of man. In conclusion, more a man creates per unit time the higher the productivity. 

Methods to improve or increase the industrial productivity:

We can improve the productivity in any situation by changing or increase the ratio of output and input. So, this ratio can be increased in the following conditions:

Input output relation:

  1. By using same amount of input, increase the output.
  2. Reduced input resources by using same amount of output.
  3. Higher the output, with less amount of input.
  4. Increased rate in output compared with rate of increase of input.
  5. Higher decrease in input, less decrease in output.
  6. Productive system maybe increases by their income from sales of their means higher the output the higher income from sales. In productivity we do not only focus on physical quantities but also focus on the quality. The higher the quality the higher in productivity.

Fundamental concepts related to productivity:

Time efficient production methods:

Productivity can increase if workers work more to produce more unit products in less hours. This may achieve by combining operations and reduction of non-productive time.

Use of technology innovations:

To establish desired profitability level, we can use specific technologies for our work. We can also use high speed process equipment for our production.

Efficiently use of resources:

All the resources like land, man, machine, material, energy, investment must be use by decreasing in resources may increase the output as well as productivity.

Make sure the customer satisfaction:

Output of production may have physical quantities or service products. As physical quantities is easy to count numerically. But service products are not identical for use those system to make ease of customers.therefore, it also effect on productivity.

Benefits of higher productivity:

  • It reduces the product price to the customers. In this case customer get more worth of product with reasonable price. Moreover, company sales increase
  • Jobs are created and plant expands.
  • Company gains confidence and goodwill from investors. Because higher pay divided to the investors.
  • It also beneficial for employees in form of increasing the wages. Due to better paid to employees, they will perform their job and work with dedication.
  • Company will create calm environment and a good relation between management and employees.
  • If we see this at country level then higher the productivity, higher the economy of that company. Also increase their GDP.

Human resources and industrial productivity:

As human resources are the basic input for the productive system. These are in the form of management and productive skills. These resources from human effort can easily transfer to other resource like product and service.

relation of industries with their productivity:

Sometimes different industries, companies or firms have same environment and same machinery to make same products, but they have different productivity. In addition, the basic difference is in human resources, their different men creativity level their different dedication and different management.

Finally which proves that management skills, worker role with motivation and responsibility, group technology, variety control, product quality, methods, value analysis, process control, work focus teaming also effect on the productivity of an organization.

Classification of industrial productivity:

Productivity measurement maybe classified into four categories:

  • Partial productivity measure
  • Value added productivity measure
  • Aggregation measures
  • Total productivity measures

1. Partial industrial productivity measure:

Labor productivity:

As it is the measure of the effectiveness of workforce. Basically, it’s the ratio of output to the man force input. It shows that productivity will change if we take work from work force or work take from all the men from the organization.

in other words, Output may express in physical numbers. No of human factor, work hour days or days of work per year also effects on the productivity output. One measure of labor productivity uses number of man-hours.

Similarly, Trainers or expertise also contribute for machining the input to make product. So it shows that all factors include:

  • Motivation
  • worker training
  • Activity
  • Planning
  • Labor contribution

These may increase productivity.

Material productivity (MP):

It is the ratio of raw material input to the output like product or goods.

As in manufacturing companies when machining the raw material to convert the goods or product, after that,it produces some sort of scrap in form of chips or rejectors. So, by reduction of this scrap we also can increase the productivity.

$$M.P=\frac {Product\, Goods}{Raw \,Material\, Input}$$

Energy productivity:

The major inputs for instance cement, glass and energy is used in some wise, These inputs have put great effect on the production cost.

So, It is ratio of output to energy supplied.

Finally, Technology resisted to the energy productivity. so, if companies want to increase their energy productivity, they must use specific technology.

$$E.P = \frac{output}{energy\; supplied}$$

Capital productivity:

This type of ratio is for those type of investor who is interested to increase his investment. therefore, He will compare his profit or input factors or fixed cost to its alternative comparator’s ratio of profit and input or profit/fixed cost.

2. Value added productivity measure:

As from its name it’s the difference between income from sales, costs of all factors like Material, Energy, Goods etc.

Value added (V.A) is the real gain of industrial productivity. Let


$$V.A=\frac{sales \;income -A}{Labour \;input}$$

3. Aggregation measures:

This type of industrial productivity is useful for the service companies’ outputs like

  • Transport organizations
  • Telecommunication companies
  • Hospitals
  • Hotels
  • Banks

Moreover, it is also productive fort the manufacturing industries.

This type of productivity measures in form of ratio weightage. therefore, The output must have the factor ratio is 1.0 or cost influence as 100%.

4. Total productivity measures:

All factors like

  • Production labor
  • Capital
  • Material
  • Energy

Hence, These factors are used in total productivity measures. Basically, it the relationship between total outputs and total inputs. in other words,These all factors affect on the company or organization’s productivity. Hence,

$$TPM= \frac{total \;output}{total \;input}$$

Industrial Productivity improvement:

Productivity improvement is a continuous process. It involves different steps for its improvement.

  1. Make the objective of productivity improvement e.g cost reduction, material productivity, waste control etc.
  2. Plan the performance charts and ratio to service as base index.
  3. Prepare employee work force team.
  4. Train the team members about the requirements of improvement for instance tooling, quality control tooling’s, quality charts, re-engineering work process etc.
  5. Evaluation of the improved work methods. Use the expertise designing if needed.
  6. Evaluation of improved system.
  7. Implementation and write down the results.
  8. Comparison of previous work to the improved work.

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