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    Calculating Factory Productivity

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    You have been brought in as a consultant for a factory which is not making as many goods as it made last year. Explain how you would calculate the productivity at the factory?

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    Productivity can be defined as the ratio of outputs to inputs or the output created from a certain number of inputs. William J Stevenson in his book Production/Operations Management defines productivity as "a measure of the effective use of resources, usually expressed as the ratio of output to input". It is normally calculated as Output/Input. Inputs tend to be labor, materials, capital and even energy. Productivity can be measured for a single input - this ...

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    The expert examines calculating factory productivity.