Workforce productivity

Workforce productivity is a measure of the efficiency of the production process, and is determined by the amount of output that is created for a given amount of input. In other words, it is the ratio of the amount of work completed to the amount of time and resources expended. Workforce productivity can be measured in various ways, such as output per hour, output per worker, output per machine, output per shift, and output per cost.

For example, output per hour is calculated by taking the total output generated in a given period of time and dividing it by the number of hours worked. Output per worker is calculated by taking the total output generated in a given period of time and dividing it by the number of workers employed. Output per machine is calculated by taking the total output generated in a given period of time and dividing it by the number of machines available. Output per shift is calculated by taking the total output generated in a given period of time and dividing it by the number of shifts worked. Output per cost is calculated by taking the total output generated in a given period of time and dividing it by the total cost of materials and labor.

In general, a higher level of workforce productivity is beneficial for any organization, as it indicates that the organization is able to create more output with fewer resources. Increasing workforce productivity requires an organization to focus on improving its processes, such as through better training and motivation of its workers, implementation of new technologies, and optimization of its production process.

Example of Workforce productivity

To illustrate the concept of workforce productivity, let us consider a company that produces tablets. The company has a production line that runs 24 hours a day and consists of 10 machines. The total output of the production line is 100 tablets per day. The total cost of materials and labor is $1000 per day.

In this example, the output per hour is 100 tablets divided by 24 hours, or 4.17 tablets per hour. The output per worker is 100 tablets divided by 10 workers, or 10 tablets per worker. The output per machine is 100 tablets divided by 10 machines, or 10 tablets per machine. The output per shift is 100 tablets divided by 3 shifts, or 33.3 tablets per shift. The output per cost is 100 tablets divided by $1000, or 0.1 tablets per dollar.

Formula of Workforce productivity

The formula for workforce productivity is as follows:

Workforce productivity = Total Output / Total Input

where Total Output is the amount of output generated in a given period of time and Total Input is the amount of resources expended in the same period of time.

When to use Workforce productivity

Workforce productivity is a useful tool for organizations to measure the efficiency of their production process and help them make informed decisions about how best to utilize their resources. It can be used to evaluate the effectiveness of different methods of production, analyze the efficiency of specific machines or workers, and compare the performance of different departments or divisions. Additionally, workforce productivity can be used to track the progress of a production process over time and identify areas where improvements need to be made.

Types of Workforce productivity

There are various types of workforce productivity measures that can be used to assess an organization's efficiency. These include:

• Output per Hour: This is calculated by taking the total output generated in a given period of time and dividing it by the number of hours worked.
• Output per Worker: This is calculated by taking the total output generated in a given period of time and dividing it by the number of workers employed.
• Output per Machine: This is calculated by taking the total output generated in a given period of time and dividing it by the number of machines available.
• Output per Shift: This is calculated by taking the total output generated in a given period of time and dividing it by the number of shifts worked.
• Output per Cost: This is calculated by taking the total output generated in a given period of time and dividing it by the total cost of materials and labor.

Steps of improving Workforce productivity

There are several steps that organizations can take to increase their workforce productivity. These include:

• Training and Motivating Employees: Training and motivating employees can help increase their productivity and efficiency in their roles, as well as help them become more comfortable with new technologies and processes.
• Implementing New Technologies: Organizations should consider implementing new technologies such as automation, machine learning, and artificial intelligence to streamline their production processes and improve their efficiency.
• Optimizing Production Processes: Organizations should also look for ways to optimize their production processes, such as by reducing waste and increasing efficiency.
• Monitoring Performance: Organizations should regularly monitor the performance of their workers and machines to ensure that productivity is being maintained and improved.

Advantages of Workforce productivity

There are several advantages to having a high level of workforce productivity. These include:

• Increased profits: Higher levels of workforce productivity can lead to increased profits for an organization, as the organization is able to generate more output with fewer resources.
• Improved quality: Higher levels of workforce productivity can lead to improved quality, as the organization is able to produce more output with fewer resources, allowing it to focus more attention on quality control.
• Lower costs: Higher levels of workforce productivity can lead to lower costs, as the organization is able to produce more output with fewer resources, resulting in lower labor, material, and overhead costs.

Limitations of Workforce productivity measure

There are some limitations to measuring workforce productivity. First, it does not account for the quality of the output produced, as it only measures the quantity. Second, it does not take into account any external factors that may affect productivity, such as environmental conditions or the availability of materials. Third, it does not consider any additional benefits, such as improved morale or increased innovation, that may result from increased productivity. Finally, it is difficult to accurately measure productivity, as it requires data from multiple sources and is subject to human error.

Other approaches related to Workforce productivity

There are several other approaches related to workforce productivity that organizations can use to measure and improve their efficiency. These include:

• Lean Manufacturing: Lean manufacturing is an approach to production that focuses on eliminating waste and improving the efficiency of processes. This includes streamlining processes, reducing inventory, and making processes more predictable.
• Six Sigma Methodology: The Six Sigma methodology is a data-driven approach that focuses on measuring, analyzing, and improving processes. It uses a series of tools and techniques to identify and remove sources of variation in order to improve process efficiency.
• Total Quality Management: Total Quality Management (TQM) is an approach that focuses on continuous improvement and meeting customer requirements. It emphasizes the importance of customer feedback and process measurement in order to ensure that processes are constantly improving.

Overall, there are several other approaches related to workforce productivity that organizations can use to measure and improve their efficiency. These include Lean Manufacturing, the Six Sigma methodology, and Total Quality Management, each of which uses different tools and techniques to identify and remove sources of variation in order to improve process efficiency.

Workforce productivity — recommended articles

Operational performance — Overall equipment effectiveness — Operating effectiveness — Productivity report — Flow analysis — Measurement of capacity — Defect per million opportunities — Uniformity of production — Continuous operations

References

• Schmidt, F. L., Hunter, J. E., & Pearlman, K. (1982). Assessing the economic impact of personnel programs on workforce productivity. Personnel Psychology, 35(2), 333-347.
• Kazaz, A., Manisali, E., & Ulubeyli, S. (2008). Effect of basic motivational factors on construction workforce productivity in Turkey. Journal of civil engineering and management, 14(2), 95-106.
• Attaran, M., Attaran, S., & Kirkland, D. (2019). The need for digital workplace: Increasing workforce productivity in the information age. International Journal of Enterprise Information Systems (IJEIS), 15(1), 1-23.