Benifits of Improving Productivity For An Organization
Productivity:
Productivity is the ratio between output and input. By measuring productivity, an organizational management can observe how effectively they are using their resources. Total quantity of work has been produced in a shift by an associate is define as productivity. That means higher productivity gives higher volume of production with the same overhead cost. What is the benifits of improving productivity for a factory will discuss today.
Can be benifited from higher productivity -
- The Organization
- Buyers / Customers
- The Associates / Employee
- The Nation.
Read more about how to improve productivity in 20 ways.
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| Benifits of Improving Productivity For An Organization |
- Produce More Production: High productivity helps to achieve more volume of production than the plan.
- Increase Sales: Sales also will be increase as volume of production going high. Extra delivery also possible when goods will be close earlier because of higher productivity.
- Reduce Cost Per Minute (CPM): Increase production will reduce product manufacturing cost. Read more details - How to Reduce Cost per Minute (CPM) in a factory.
- Competitive Benifits: Company will more enableto compete with competitors in the market to get the order because of lowest product making cost through high productivity.
- Increase Profit: As garments making cost will reduce and sales is more so profit also will increased.
- Customer Satisfaction: Customer / Buyer will be satisfy when company meets their demand and every delivery will on time. Satisfaction of customers will result in their loyalty towards the company and order quantity also may improve continously in next.
- Good Working Environment: Management will happy with their employees / associates because of higher productivity. Confidence and skill also increase through regular production.
- Job Satisfaction: Employees will get benifits through bonuses and internal rewards for their high productivity. As company will earn more profit, salary & others benifit also will paid on time. So people will work happily there.
- Less Turnover & Absentiesm: People will committed to the organization for their job satisfaction & good working environment that will reduce absentiesm and labor turnover as well.
- Organizational Growth: Due to higher productivity, A company may go for expand their business. It will create good corporate image ( Goodwill ) to others for the company.
- Employment Opportunity: Organizational growth will need more employees by which more job opportunities will be created.
- Economic Contribution: From more sales & earning, a company enables to contribute more to GDP and it can help to stimulate economic growth of a country.
So by the productivity improvement - company, employee and the related people can be benifited and the nation as well.
Read related topics on: Labor Productivity And Machine Productivity
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