So with this formula, productivity is defined as it is the ratio of OUTPUT to INPUT.
- Productivity is a measure of efficiency which indicates how inputs are utilized.
- So here in the apparel industry output is taken as a number of garments produced.
- The input we can take in terms of – Labor, Machine, and Time.
- Labor productivity: If we take labor as input then this will indicate no. of pieces produced per labor.
- Machine productivity: If we take machine as input then this will indicate no. of pieces produced per machine
- Value productivity: If we take time as input then this will indicate no. of pieces produced per unit time.
Simple Ways to Improve Productivity
There are 3 simple ways to improve productivity in apparel industry and all 3 ways are directly related to formula.
- Increase the output with same input.
- Decrease the input with same output
- Little increase in input with greater increase in output.
Consider a garment factory with 10 operators and they are producing 50 pieces per day. With this situation the labor productivity is 5 pieces per operator. Now to improve productivity we can choose any one method to improve productivity.
1) Increase the output with same input
In this case we are asking to the group of 10 operators for more output that means instead of 50 we are asking 55 pieces per day. Suppose they achieve this that means productivity will improved 55/10 = 5.5 pieces per operator.
2) Decrease the input with same output
In This case we are asking same output means 50 pieces but with lesser man power that means if they achieve same output with 9 operators. The productivity will increased to 50/9= 5.55 pieces per operator.
3) Little increase in input with greater increase in output
In this case, we are asking for more output with little increase in input like we are asking 60 output with 11 operators in a line instead of 50 pieces with 10 operators. If they achieve this then productivity will increase to 60/11= 5.45 pieces per operator.