Labor Productivity - how to Calculate

 

Labor Productivity:

Productivity is the relationship between the quantity of output and the quantity of input in a specific timeframe. If you calculate for 10 hours shift in a line or factory, you need to consider output of 10 hours. Total achieved production in pcs & total number of operators/labor involve to produce those qty is required to calculate labor productivity.

For example,

A production line produce 1200 pcs with 20 manpower in 10 hour shift then,

Labor productivity at 10 hours = 1200/20 = 60 pcs

If we want it at 8 hours then calculate output of 8 hours & number of labor involve there to get the result.

A production line produce 960 pcs with 20 manpower in 8 hour shift then,

Labor productivity at 8 hours = 960/20 = 48 pcs

And in a hour = 120/20 = 6 Pcs

 

So, simply we can tell "Labor Productivity is the ratio between total output & labor input."

But day by day with increasing costings of raw materials and worker’s salary, Manufacturing cost is increasing. So to make profitable for any factory, it is very important to increase labor productivity. 

Also Read : Improve Productivity in 20 Ways