Define productivity index. State it with respect to labour, material and machine.

Define productivity index. State it with respect to labour, material and machine.
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Answer :

Productivity Index:- It is used to compare the productivity during the current year with the productivity during the base year. Base year is any year which the company users or comparative study.

1.Labour Productivity:-Output can be measured in total quantity produced and labour can be measured in total man hours required to produce that output. This index is relatively free of changes caused by wage rates and labour mix.

2.Machine Productivity :- Output can be measured in total quantity produced and machine can be measured in total machine hours required to produce that output.

3.Material Productivity:--The Productivity o the materials becomes key actor in economic production/operation..It is Number o units produced per cost o material.
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