Concept and Definition of Enterprise Productivity

The concept of productivity, is perhaps one of the most important when assessing the degree of a country’s economic development and level of quality of life of its people. We define productivity as the ratio of the products obtained and applied to obtain inputs.

The product can generally be tangible goods or services, while resources can be grouped into the following categories:

  • Earth
  • Materials
  • Facilities, Machines & Tools
  • Services of Man

How to improve the productivity of a country, industry or company is associated with increased production of goods or services, maintaining a constant input level, or decrease of the inputs used in obtaining, maintaining the production level constant. Thus, the application of fertilizers and irrigation, improve the procurement of wheat, rice, etc.., Expressed in kg / ha. The same applies if a 10000 m2 industrial unit, the production of any product, increase, then we can say that increasing productivity in kg/m2. If a production process is used 2 tons of iron rod 1 / 8 “and is currently used for the same production, 1.5 tons, saying that productivity increased by 25%, expressed in units produced by ton of iron.

If a machine produces fabric 20m per minute, and, by amendment, increases to 30 m / min., We say the machine productivity increased by 50%, measured in meters of cloth per day or any time unit. To raise the productivity of a country, we need a coordinated effort by the key players: governments, employers and workers. Governments, creating the appropriate framework policies to achieve economic development, maintain or increase employment, etc. Entrepreneurs, creating a work environment conducive to the development, providing training for themselves and their employees, investing in technology and equipment, etc.

Finally the workers must understand that improved productivity will ultimately benefit themselves more competitive by providing their jobs. The time spent in performing a task can be decomposed into several parts including: Basic Content Working EI is the time (ideal) which carry out the task, if the design or specifications were perfect. Therefore, the basic content of Labour, is the minimum theoretical time needed to obtain a unit of production.

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