Standard productivity: Difference between revisions
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'''Standard productivity''' is the ratio of total revenue from sales and [[cost]] of used manufacturing resources. It allows to compare value of sales in time, with level of [[money]] involved in the [[company]] resources. | '''Standard productivity''' is the ratio of total revenue from sales and [[cost]] of used manufacturing resources. It allows to compare value of sales in time, with level of [[money]] involved in the [[company]] resources. | ||
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* [[Structural productivity]] | * [[Structural productivity]] | ||
* [[Threshold productivity]] | * [[Threshold productivity]] | ||
{{infobox5|list1={{i5link|a=[[Cost allocation]]}} — {{i5link|a=[[Threshold productivity]]}} — {{i5link|a=[[Cost calculation]]}} — {{i5link|a=[[Cost per unit]]}} — {{i5link|a=[[Segment margin]]}} — {{i5link|a=[[Quality costs record]]}} — {{i5link|a=[[Differential costing]]}} — {{i5link|a=[[Capacity analysis]]}} — {{i5link|a=[[Value added statement]]}} }} | |||
==References== | ==References== | ||
* Boyer, J. S. (1982). ''[http://science.sciencemag.org/content/218/4571/443.short Plant productivity and environment]''. Science, 218(4571), 443-448. | * Boyer, J. S. (1982). ''[http://science.sciencemag.org/content/218/4571/443.short Plant productivity and environment]''. Science, 218(4571), 443-448. | ||
[[Category:Productivity]] | [[Category:Productivity]] | ||
[[pl:Produktywność standardowa]] | [[pl:Produktywność standardowa]] | ||
Latest revision as of 05:58, 18 November 2023
Standard productivity is the ratio of total revenue from sales and cost of used manufacturing resources. It allows to compare value of sales in time, with level of money involved in the company resources.
The computational formula
Productivity depends on used manufacturing factors in economic processes. The indicators determining the standard productivity inform what sales volume is generated by value of manufacturing resources, without providing information about the participation of the particular resource in the creation of the final result. They are:
where:
- P l - general standard productivity,
- P li - partial standard productivity for i-th manufacturing factor
- Sn - sales revenue,
- L i - value of the i-th manufacturing factor
You need to take into account that the standard productivity factor includes error, because it inadequately charged only one factor that creates the final result. From the formula, it appears that the total sales revenue accrue to only one manufacturing factor which is incorrect reasoning. This problem is eliminated by using structural productivity indicator, which analyze effects of specific types of activities in the company. However, a prerequisite for its calculations is to find the share of each activity in generating sales revenue.
The purpose of the productivity calculations is to evaluate the productivity of manufacturing factors of each type of activity. Productivity can have also the diagnostic function and inform of existence of synergistic effect.
See also:
| Standard productivity — recommended articles |
| Cost allocation — Threshold productivity — Cost calculation — Cost per unit — Segment margin — Quality costs record — Differential costing — Capacity analysis — Value added statement |
References
- Boyer, J. S. (1982). Plant productivity and environment. Science, 218(4571), 443-448.
