How to Measure Productivity?

Overview

If you want to increase the speed of process and operations then you need to increase productivity. It is important because;

Anything that cannot be measured can’t be improved.

So, here in this video you will learn, ‘How to Measure Productivity?’

Learnings

1. Formula of Productivity

Productivity simply means Output divided by Input.

Output/Input = Productivity

Let’s understand this with some examples.

Example 1

Suppose you gave 5-kg fodder to the Cow (Input) and the Cow gave 50 litres Milk (Output), therefore

Productivity = 50 litre per 5 kg
= 10 litre per kg

Therefore, the productivity of cow is 10 litre of milk per kg of fodder given.

Example 2

Suppose a batsman played 100 matches (Input) and scored 1000 runs (Output), therefore

Productivity = 1000 runs per 10 Matches
= 100 runs per Match

Therefore, the productivity of batsman is 100 runs per match played.

2. Elements of Productivity

To increase productivity, improvement in both human and technological elements is required i.e.

Human Elements: To improve human elements, you give your employees Overtime, Incentive, Salary hike and ESOPs.
Technological Elements: It is related to technology or machines.

3. Critical Success Factor to Maximize Productivity

You need to identify critical success factors to maximize your productivity and convert it into formula of productivity.

There are two major factors, which are responsible for increasing productivity of an employee in an organization. These are:

Key Learnings

Formula of productivity is Output/Input
Improvement in both human and technological elements is needed to increase productivity
KRA and KPIs are the two factors which are responsible for increasing productivity