Production is defined as output quantity derived from utilization of machine and manpower effort in the given time.
For example: Assume that a T-Shirt factory has 100 machines and it works 8 hours a day. Each operator makes 10 pieces (T-Shirts) per hour then production will be
Production/Day = (100 X 8 X 10) = 8,000 Pieces
If you know labor productivity you can use following formula to calculate production per day.
Production per Day = (Unit produced by operator per hour X No. of machines X Shift hours in a day)
Production per Day = (Unit produced by operator per hour X No. of machines X Shift hours in a day)
For example: Assume that a T-Shirt factory has 100 machines and it works 8 hours a day. Each operator makes 10 pieces (T-Shirts) per hour then production will be
Production/Day = (100 X 8 X 10) = 8,000 Pieces
How we can improve production?
According to above production calculating formula, if one factor is increased out of three factors (operator’s production rate, no. of machines and daily working shift hours).
- If factory increases working hours/ day. For example: if factory works 10 hours instead of 8 hours factory will produce more pieces than earlier. Now production will be = 10X100X10 pieces = 10,000 Pieces/day
- If total no. of machine capacity is increased. For example – 120 machines is used instead of 100 machines then current production will be =10 X120X8 pieces = 9,600 Pieces /day
- Increased operator’s production rate (productivity). Through training program or skill development operator’s production rate improved by 10% i.e. 11 pieces production per hour. Factory’s current production will be = 11 X 100 X 8 = 8,800 Pieces /Day. Operator's production rate can be improved though use of advanced machines.
The improvement has been shown in the table
Production factors changed
|
Before (units)
|
After (units)
| |
1
|
Working hours increased – 2 hours extra work
|
8,000
|
10,000
|
2
|
Machine capacity increased – 20 extra machines added
|
8,000
|
9,600
|
3
|
Operator’s productivity improved – 10% extra
|
8,000
|
8,800
|
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