2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
We have already talked about how the profitability of sales is calculated. However, in addition to those factors that are directly taken into account in the calculations and are present in the formulas, there are a huge number of others that have no less influence on the final result. One such factor is labor productivity.
What is natural labor productivity
Essentially, this is the classic definition of productivity, studied in high school. Natural labor productivity is the basis for more complex calculations. To understand how to calculate labor productivity, you can use the simplest formula:
Fri=VHF/NWP.
The symbols used in this formula are deciphered as follows:
- PT - the desired value, i.e. performance itselflabor.
- VHF - the volume of products produced for the reporting period or another unit of time (shift, day, week, month, etc.).
- NWP - the number of production personnel, i.e. employees of the enterprise.
Not to be confused with laboriousness
So, we figured out a little about how to calculate labor productivity. However, if you do not use these numbers to your advantage, a set of dry facts will not work. In particular, those who wish to increase labor productivity should pay special attention to rationing.
Labor rationing is the distribution of working time by production and / or operations. In order for labor rationing to be competent, it is necessary to take into account both the labor intensity of the final product and the labor intensity of components. By labor intensity in this case, we mean the amount of time required to produce one unit of output.
Many people mistakenly believe that knowing how to calculate labor productivity, it is very easy to get the value of labor intensity, because this value is the reciprocal of productivity. However, in practice things are somewhat different. This approach to business reduces output, causes the withering of many firms.
Tr.=T/ORP
- Tr. - the desired value, in this case - the complexity.
- T - the sum of working hours for a certain period of time.
- ORP - the volume of products produced in the same period.
For maximum accuracy, the results should be presented as:t(hh:mm:ss)/item. This record format reflects the essence of the indicator as accurately as possible.
Have you already calculated the labor productivity and labor intensity of your production? Then it's time to learn about what principles should be followed in the rationing of labor.
Principles of labor rationing
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labor productivity It is best to focus on aggregated indicators. What does it mean? For example, if we are talking about a packer in a store, it makes no sense to count how much time it takes her to inspect one apple or cucumber. But to indicate how much of any product by weight it should process per shift will be quite appropriate. In addition to increasing productivity, you can also simultaneously identify the most conscientious and qualified employees and weed out those who do not meet the requirements.
- Things are completely different with hard work. It is not enough to know how to calculate labor productivity here - it is necessary to do this in relation to all cycle operations. A striking example is the work of electronics assemblers. If there is no such thing as labor rationing in your enterprise, even being the most skilled workers, they will spend most of their time on “coffee and buns”, and then rush to do hack work before the deadline.
Meet the experience of successful world-famous companies, implement effective know-how in your business - and then labor productivity will always be on top!
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