International Journal on Mechanical Engineering and Robotics (IJMER)
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Productivity Index of a Machine Tool Company – A Case Study
1Joseph George Konnully, 2H. Krishnamurty Dora, 3S. Irfan Sadaq, 4V. Dharam Singh,
5Abdul Raheem Junaidi
1,2,3,4,5
MED, MJCET, INDIA.
Abstract - Productivity is the heart of economic growth and development. The government is concerned about the low productivity in our country. The developing country like India wants to raise the standard of living by increasing productivity and the economic system. High productivity leads to prosperity which in term leads to higher and higher productivity.
The aim of the paper is to explain the various productivity measurement technique and to study and analyze the reasons for the low productivity in the organization on recommend the solution to improve the productivity of the organization.
In the introduction, a brief introduction is given about productivity. In the literature survey the various facts of productivity like the factors affecting productivity, benefits of higher productivity, and benefits of productivity measurement in the organization, common productivity indicators, and productivity improvement techniques were discussed. In the background of the organization is given in the case study, the problem identification methodology adapted, conclusion of the analysis were explained.
Recommendations to improve productivity of the organization are also explained.
Keywords – Productivity, Productivity Index, Labour Productivity, Capital Productivity, Energy Productivity.
I. INTRODUCTION
Productivity is the heart of economic growth and development. IT is the focal point of current public interest in business and economic matters all over the world. In all contemporary discussions of business and economic affairs, productivity is directly or indirectly involved. This is so because the facts of productivity one among the fundamental facts in business and economics.
Productivity touches all its members, employers and employees, Governments and citizens, corporate giants and small scale industries, public and private sectors.
The Government is concerned about the low productivity in our country. The Management wants automation to increase productivity. The trade unions resist productivity linked wages and bonuses. The high productivity levels in Japan, Tiawan and South korea are the envoy of Americans. The standard of living by increasing productivity and the economic system. The western world knows that the best way to maintain the
high levels of income and standard of living of their people is by concentrating on productivity.
The concept of productivity, productivity trends, productivity measurement, productivity improvement are the important contemporary issues. The levels of productivity in a country is the index of standard of living of people. Low productivity means wasting or resources or exploiting the resources at a relatively high cost. High productivity on the other hand leads to more income, less price and more employment. Thus high productivity leads to prosperity. Which in turn leads to higher and higher productivity?
The national productivity index, the per capita income in India is barely Rs. 1900 as against Rs. 88000 in Japan and Rs. 63,000 in USA. Rate of growth of productivity in India is only 1.4% which is 6% in Japan.
II. LITERATURE SURVEY
A. Origin of the Word Productivity
The world productivity has become such a buzz word these days that it is almost rare not to find it mentioned in some context or the other in trade magazines, newspapers, managements briefs, shareholders reports, political speeches, T.V news etc., just to name a few.
Where did this word come from actually?
B. Factors Affecting Productivity:
There are a number of factors affecting productivity.
The united states of department of commerce (1981) catalogued 25 different factors that are believed to have contributed to the decline of productivity growth. Some of the factors contributing to the decline of productivity are –
Investment
Capital / labor ratio
Research and development
Capacity utilization
Government regulations
Age of plant and equipment’s
Emergency cost
Work force mix
Work ethic
Workers fear about loss of job
Union’s influence
Management
C. Total Factor Productivity
It is the ratio of net output to the sum of associated labour and capital inputs. By “net output” means total output minus intermediate goods as services purchased.
Total factor productivity; 𝑛𝑒𝑡𝑜𝑢𝑡𝑝𝑢𝑡
𝑙𝑎𝑏𝑜𝑢𝑟 +𝑐𝑎𝑝𝑡𝑖𝑎𝑙 𝑖𝑛𝑝𝑢𝑡
= 𝑡𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 −𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠 𝑎𝑛𝑑 𝑠𝑒𝑟𝑣𝑖𝑐𝑒𝑠 𝑝𝑢𝑟𝑐 𝑎𝑠𝑒𝑑 𝑙𝑎𝑏𝑜𝑢𝑟 +𝑐𝑎𝑝𝑡𝑖𝑎𝑙 𝑖𝑛𝑝𝑢𝑡
D. Total Productivity:
It is in the ratio of total output to the sum of all inputs factors
Total Productivity:𝑡𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑝𝑢𝑡
= 𝑡𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
𝑙𝑎𝑏𝑜𝑢𝑟 +𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙 +𝑐𝑎𝑝𝑡𝑖𝑎𝑙 +𝑒𝑛𝑒𝑟𝑔𝑦 +𝑜𝑡𝑒𝑟 𝑒𝑥𝑝𝑎𝑛𝑠𝑒𝑠 𝑖𝑛𝑝𝑢𝑡
E. Productivity improvement techniques:
TECHNOLOGY BASED TECHNIQUES:
Computer Aided Design (CAD)
Computer Aided Manufacturing (CAM)
Laser Beam Technology
Energy Conservation.
Rebuilding old machinery.
Group technology.
Maintenance Management
EMPLOYEE BASED TECHNIQUES:
Financial incentives.
Fringe benefits.
Employee promotion.
job rotation.
Working conditions improvement.
Training.
Education
Supervision
Job Enrichment
Recognition
Punishments
Quality circles
Zero defects
PRODUCT BASED TECHNIQUES:
Value Engineering
Product Diversification
Product simplification
Research & development
Product Standardization
Product reliability improvement TASK BASED TECNHIQUES:
Methods Engineering
Work measurement
Job design
Job evaluation
Human factor engineering
MATERIAL BASED TECHNIQUES:
Inventory control
Materials requirement planning (MRP)
Materials Management
Quality control
Material Handling system improvement
Material re-use and recycling.
III. HISTORY OF THE COMPANY
The company was incorporated as a joint stock company in the private sector under the Indian companies Act in 1943 with the limited objective of manufacturing high speed cutting tools and precision measuring instruments, with the technical assistance of a few czechoslovkian engineers.
A. Case Study Problem Identification:
The organization which produced profits and bagged many awards like best exporting company in the year upto 1985/86/87 is landed into heavy losses within a short period. The financial position of the organization has gone down to such a critical condition that it is struggling for its working capital for day to day transactions. Bills are overdue for payment to suppliers of raw materials Cutting tools etc, are piled up. Cheques issued to various suppliers are dishonoured and the organization lost its reputation and no supplier or sub- contractor is ready for any business transaction with the organization. This situation further damaged the organizations reputation due to prolonged delays in dispatching the products to the customers.
In such situation an investigation is required to find the reasons for the losses. For any organization the input factors are men, materials, money, energy etc., and output is the products. If these input factors are not utilized properly, the productivity of the organization will be low and the organization lands in to losses.
Hence the various inputs factors are to be critically examined to find which factor is contributing more to low productivity. These identified factors are to be improved by suitable measures.
B. Methodology adapted:
As everyone knows that efficient utilization of the available resources yields maximum profits to any organization, the various inputs factors are analysed by various productivity measurement techniques. The following parameters are measured to know the reasons for low peoductivity:-
Material productivity
Labour productivity
Capital productivity
Energy productivity
Percentage of utilization
Performance index
Value dependent productivity
Age dependent productivity
The past data from 1985-86 was collected and all these parameters were analysed.
IV. RESULTS OF THE ANALYSIS:
Table 1: The materials productivity and productivity index
Year Material Consumpti on (Rs in Lakhs) Value of Production (Rs in Lakhs) Productivi ty Productivi ty Index
84-85 753.70 1822.45 2.41 1.00 85-86 1116.53 2406.14 2.16 0.89 86-87 1894.42 3357.47 1.77 0.73 87-88 2020.61 3918.42 1.94 0.80 88-89 2361.18 4763.17 2.02 0.84 89-90 2345.16 5032.33 2.15 0.89 90-91 2343.10 5060.39 2.16 0.89 91-92 2022.87 4783.57 2.36 0.97 92-93 1647.89 4399.01 2.67 1.10 93-94 1112.40 3412.62 3.06 1.26 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥
= 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
× 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑌𝑒𝑎𝑟 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
Figure 1: Material Productivity Graph
Table 2: The labour productivity and productivity index
Year Productio n (Rs in Lakhs) Labour (Rs in Lakhs) Productivi ty Productivi ty Index
84-85 1822.45 382.43 4.77 1.00 85-86 2406.14 465.79 5.17 1.08 86-87 3357.47 527.29 6.36 1.33 87-88 3918.42 647.56 6.05 1.23 88-89 4763.17 903.87 5.27 1.10 89-90 5032.33 968.07 5.20 1.09 90-91 5060.39 1139.84 4.44 0.93 91-92 4783.57 1088.39 4.40 0.92 92-93 4399.01 1198.53 3.67 0.77 93-94 3412.62 1199.28 2.85 0.59 𝐿𝑎𝑏𝑜𝑢𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
𝐿𝑎𝑏𝑜𝑢𝑟 𝐶𝑜𝑠𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥
= 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑎𝑏𝑜𝑢𝑟 𝐶𝑜𝑠𝑡
× 𝐿𝑎𝑏𝑜𝑢𝑟 𝐶𝑜𝑠𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑌𝑒𝑎𝑟 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
Figure 2: Labour Productivity Graph Table 3: Capital productivity and productivity index
Year Output Capital input Producti vity Producti vity Index
84-85 1822.45 1800.80 1.01 1.00 85-86 2406.14 2233.66 1.08 1.07 86-87 3357.47 2801.95 1.20 1.19 87-88 3918.42 3099.22 1.26 1.19 88-89 4763.17 3818.07 1.25 1.24 89-90 5032.33 4444.72 1.13 1.12 90-91 5060.39 4703.41 1.08 1.06 91-92 4783.57 5179.84 0.92 0.91 92-93 4399.01 5158.49 0.85 0.84 93-94 3412.62 5060.47 0.67 0.66 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥
= 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
× 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑌𝑒𝑎𝑟 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
Figure 3: Capital Productivity Graph Table 4: Energy productivity and Productivity index
Year Outpu t Energ y input Produ ctivity Produ ctivity Index
84-85 1822.45 78.62 23.18 1.00 85-86 2406.14 99.63 24.15 1.04 86-87 3357.47 111.47 30.12 1.30 87-88 3918.42 111.59 35.11 1.51 88-89 4763.17 133.73 35.62 1.54 89-90 5032.33 161.18 31.22 1.35 90-91 5060.39 178.63 28.32 1.22 91-92 4783.57 212.36 22.53 0.97 92-93 4399.01 146.05 40.20 1.73 93-94 3412.62 119.58 28.53 1.23 𝐸𝑛𝑒𝑟𝑔𝑦 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑠𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥
= 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑠𝑡
× 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑠𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑌𝑒𝑎𝑟 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
Figure 4: Energy Productivity Graph
Table 5: Total factor productivity and productivity index
Year Net output Labour + Capital input Productivity Productivity Index
84-85 1068.50 2183.23 0.49 1.00 85-86 1289.61 2699.45 0.48 0.98 86-87 1463.05 3329.24 0.44 0.90
88-89 2401.99 4721.96 0.51 1.04 89-90 2687.17 5412.79 0.50 1.02 90-91 2717.29 5843.25 0.47 0.96 91-92 2760.70 6268.02 0.44 0.90 92-93 2751.12 6357.02 0.43 0.88 93-94 2300.22 6258.75 0.37 0.76 Net Output = Total Output – Material Purchased 𝑇𝑜𝑡𝑎𝑙 𝐹𝑎𝑐𝑡𝑜𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦
= 𝑁𝑒𝑡 𝑂𝑢𝑡𝑝𝑢𝑡
𝐿𝑎𝑏𝑜𝑢𝑟 + 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥
= 𝑁𝑒𝑡 𝑂𝑢𝑡𝑝𝑢𝑡
𝐿𝑎𝑏𝑜𝑢𝑟 + 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
× 𝐿𝑎𝑏𝑜𝑢𝑟 + 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑌𝑒𝑎𝑟 𝑁𝑒𝑡 𝑂𝑢𝑡𝑝𝑢𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
Figure 5: Total Factor Productivity Graph Table 6: Total productivity and Productivity Index
Year Total output Total input Productivity Productivity Index
84-85 1068.50 3015.55 0.6044 1.00 85-86 1289.61 3915.61 0.6145 1.016 86-87 1463.05 5335.13 0.6293 1.041 87-88 1897.81 5908.31 0.6632 1.097 88-89 2401.99 7216.84 0.6600 1.092 89-90 2687.17 7919.13 0.6355 1.051 90-91 2717.29 8365.98 0.6049 1.000 91-92 2760.70 8503.46 0.5625 0.9306 92-93 2751.12 8150.96 0.5397 0.8932 93-94 2300.22 7491.73 0.4555 0.7536 Total Output = Value of Production
Total Input = Material Cost + Labour Cost +Capital Cost + Energy Cost.
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝑁𝑒𝑡 𝑂𝑢𝑡𝑝𝑢𝑡 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑝𝑢𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥
= 𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑝𝑢𝑡
× 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑝𝑢𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 𝑇𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 𝑖𝑛 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
Figure 6: Total Productivity Graph
Table 7: Age dependent productivity and productivity index
Year Value Production (V) Conservation Cost (Lakhs) (C) Productivity Index Plant and Machinery Book Value Employees wages
80-81 850.26 238.27 1.23 595.62 235.06 81-82 829.52 260.01 1.21 660.87 239.78 82-83 1074.29 305.69 1.22 726.12 279.33 83-84 1414.48 437.75 1.19 830.33 317.85 84-85 1822.45 657.39 1.16 904.35 382.43 85-86 2406.14 795.28 1.17 1171.68 465.79 86-87 3357.47 1012.45 1.17 1915.78 527.29 87-88 3918.42 953.72 1.21 1960.34 647.56 88-89 4763.17 1383.75 1.17 3284.34 903.87 89-90 5032.33 1603.24 1.15 2374.46 968.07 90-91 5060.39 1789.65 1.14 2485.67 1139.84 91-92 4783.57 1832.58 1.13 2768.56 1088.37 92-93 4399.01 2025.85 1.10 2803.17 1198.53 93-94 3318.70 1936.36 1.07 --- ---
Figure 7: Age Dependent Productivity Graph Table 8: Performance index
Year
STD-Hours Produced (Lakhs)
Available Hours (Lakhs)
Performance Index
85-86 7.02 11.01 63.70
86-87 7.19 9.97 72.11
87-88 6.62 9.49 69.78
88-89 6.78 9.38 72.28
89-90 6.48 11.80 54.92
90-91 6.56 11.80 55.59
91-92 6.80 13.03 52.18
92-93 5.12 12.26 41.26
93-94 4.85 11.93 40.65
𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 = 𝑆𝑡𝑑. 𝐻𝑜𝑢𝑟𝑠 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 𝐴𝑣𝑎𝑙𝑖𝑎𝑏𝑙𝑒 𝐻𝑜𝑢𝑟 𝑋 100
Figure 8: Performance Index Graph Table 9: Percentage of hours machines used
Year Available Hours
Utilized Hours
Percentage Utilization 85-86 11.01 8.20 74.47 86-87 9.97 7.93 79.53 87-88 9.49 7.10 74.82 88-89 9.38 7.14 76.11 89-90 11.80 7.26 61.52 90-91 11.80 7.32 62.03 91-92 13.03 7.16 54.95 92-93 12.26 6.21 50.24 93-94 11.93 5.37 45.01
Figure 9: % Hours Machine used.
From the various parameters measured it is observed that capital productivity has increased from 1.08 in the 84-85 to 1.25 in the year 88-89 and from year 89-90 it started downward trend. It was 1.13 in year 89-90 and fallen to 0.67 in the year 93-94.
Similarly energy productivity also shown an increasing trend up to 88-89 and from the year 89-90 it started downward trend . Productivity was 23.18 in the year 84- 85 and it reached 35.62 in the year 88-89. In the year 89- 90 energy productivity was 31.22 and from these continuous downward trend and finally it reached to 28.53 in the year 93-94.
In case of labour productivity it was 4.77 in the year 84- 85 and it increased upto 6.36 in the year 86-87. Later it is showing downward trend. Labour productivity was 6.05 in the year 87-88 and came down to 2.85 in the year 93-94.
In case of total factor productivity it is showing increasing trend upto the year 88-89 and later on downward trend followed. It was 0.49 in the year 84-85 it increased upto 0.51 in the year 88-89. In the year 89- 90 total factor productivity was 0.50 and it fallen down to 0.37 in the year 93-94.
Performance index is showing upward trend upto the year 88-89 and then started down trend. In case of
percentage of hours machine used it is 79.53 in the year 86-87 and it is 45.01 in the year 93-94.
V. CONCLUSION FROM THE ANALYSIS:
From the analysis of the data there is downward trend in total productivity, labour productivity, energy productivity etc., from the year 1989-90. All the parameters are showing the down trend. From the analysis the low productivity was identified mainly because of labour productivity which is 4.77 in the year 1984-85 and the 2.85 in the year 1993-94. Standard hours produced was 7.02 lakhs in years 1985-86 and only 4.85 lakhs in year 1993-94. The reason for the low productivity of the labour and the poor performance index of labour was due to low percentage of utilization
of machines. The machine utilization was 74.47% in the year 1985-86 and it was gone down to 45.01% in the year 93-94. It is evident from the analysis the low productivity was mainly due to low utilization of machines available in the organization.
REFERENCES
[1]. David J. Sumanth “Productivity Engineering &
Management”.
[2]. O.P. Khanna “Work Study”
[3]. C. Leicester “Changes in Labour Productivity in British Economy Y. Cranefield Management Review.
