Beruflich Dokumente
Kultur Dokumente
Razu Ahammed
Research Officer
National Productivity Organisation
Trends in the Global Economy
Globalization of markets
Globalization of value chains
Globalization of knowledge
Innovation and skill an increasing share of value added
Services an increasing share of value added
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PROFIT =
Selling Price - Cost of Production
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e.g.
Cost of Production = Rs. 100
Profit = 10 %
Selling Price = 100 + 10 = 110
After one year
Cost of Production = Rs. 120
Profit = 10 %
Selling Price = 120 + 12 = 132
Conclusion
Higher the inefficiency higher the PROFIT
Why to bother ?
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SICK AND DYING COMPANIES
Closure of industrial Units
Reduction in Employment
VSR Scheme
No Recruitments
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Solution
Improve Quality
Reduce Cost
Reduce Cycle Time
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In short
Conserve Resources
(Money, Time, People )
Improve PRODUCTIVITY
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Why is productivity important?
“Over long periods of time, small differences in rates of productivity growth compound,
like interest in a bank account, and can make an enormous difference to a society's
prosperity.
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Why is productivity important?
“Productivity is the prime determinant of a nation’s long run
standard Of living, it is the root cause of national per capita
income”
By
i) Through enterprise level higher resource utilization
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REDUCTION OF ALL KINDS OF
WASTAGES
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Vision of Productivity
&
Relation with Development
Higher
Standard
of Living
Sustained
TFP
Growth
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Productivity has 3 distinct economic effects :
Labor Capital
Revenue
Profit
Variable Cost
Rs.
(V.C)
Loss
Fixed Cost
(F.C)
PRODUCTION CAPACITY
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Break Even Concepts
Revenue
Variable Cost
Rs.
(V.C)
Fixed Cost
(F.C)
PRODUCTION CAPACITY
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Break Even Concepts
Revenue
Variable Cost
Rs.
(V.C)
(V.C)
Fixed Cost
(F.C)
PRODUCTION CAPACITY
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Manufacturing Process?
Activity that transforms input into output
Resources: Results:
Waste:
People Products
Facilities/Equipment scrap Services
Material Rework Performance
Methods Delays
Energy Etc……..
Time
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5 ways to Improve Productivity
Reduced Cost Output
Input
Manage Growth Output
Input
Work Smarter Output
Input
Pare down Output Output
Input
Work Effectively Output
Input
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Productivity in Simple Terms
Output
Productivity =
Input
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Quality, Innovation and Productivity
Productivity in the New Economy
Output
=
Input
= Quality + Innovation
= Positive state of mind
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Productivity–Changing Perspective
Attitude of Mind
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FACTORS AFFECTING PRODUCTIVITY
ORGANISATIONAL FACTORS
HUMAN FACTORS
TECHNOLOGY FACTORS
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SIX SIGNIFICANT FACTORS EFFECTING PRODUCTIVITY
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PRODUCTIVITY IS ……
STOP WASTAGE
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THANK YOU
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