Improving Efficiency, Fourth Edition

Session B: Productivity and Work Study

1 Introduction

We know what efficiency is, but how can we measure it? How will we recognize it when we see it?

If possible, it would be useful to express efficiency in numerical terms, so that we have a sound basis for comparison. And if we were able to divide work activities into small elements, we could set a standard time for performing each one, and calculate how long a task 'should' take, compared with what it does take.

The techniques described in this session attempt to do these things. Productivity reduces efficiency to a simple ratio. Method study is the breaking down of tasks into individual elements, and then analysing them. Work measurement uses techniques to determine how long a qualified worker takes to do a specified job to a defined level of performance.

2 Productivity

If you recall, our definition of efficiency was as follows.

Efficiency means making the best use of resources to achieve production of goods or services.

In its simplest form, efficiency can be expressed as a ratio of what we get out for what we put in, i.e.:

This ratio is referred to as productivity, and can be applied at a national as well as organizational level.

Let's put some numbers into this ratio. Say the inputs the resources used for a certain job cost 1000 and the output was valued at 2000.

Then the input:output ratio would be:

We can simplify this to:

This is known as the job's productivity...

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