Methods of measurement of productivity
Various sources are utilized for production like labour, raw material, machine etc. accordingly productivity is called as labour productivity , raw material productivity, machine productivity etc.
Productivity of labour = Productivity in standard hours/actual man hours
Productivity of raw material = numbers of units produced/material cost
Productivity of machines = output in standard hours /actual machine hours
Material Productivity:
Material consist of direct material and indirect material, Direct material means which goes with the product and indirect material means other consumable like fuel, chemicals in heat treatment, cutting tools, coolant etc. Material productivity measures in terms of goods produced.
Therefore, Material Productivity =
Material productivity is a technique of measurement of productivity in terms of cost of material whereas total productivity is the efficiency of the plant.
Explanation similarly for any one labour or machine productivity
Labour Productivity:
In case of labour productivity input and output can be measured in terms of money or in terms of man hour.
Labour productivity measures in terms of man hours utilised.