What are the components of productivity measurement system ?

What are the components of productivity measurement system ?

Ans. Following are the basic compliments of productivity measurement system-

(i) A list of outputs of the organization in units form.

(ii) For each type of output, standard time, standard cost, raw material 1 use, equipment use and tool use etc. .

(iii) A statement of the objectives of the organization.

(iv) A procedure of making a zero base budget using forecasts of outputs, standard times and forecasts of the productivity. ·

(v) A means of determining the productivity indexes at selected intervals.

(vi) A means of comparing output forecasts data with actual output at selected intervals.

(vii) A means of adding resource usage data and associated productivity indexes in a meaningful fashion related to outputs to reduce the details in reports as data go to higher and higher level managers.

Share this post