Learning Objective Understand the concepts of construction l
Solution
Selected ones are labour productivity and multifactor productivity
Labor productivity
Academi work : you can measure employee productivity using labor productivity equation : total output/ total input
Let\'s say your company generated $80000 worth of goods or services (output) utilising 1500 labor hours (input). To calculate your company\'s labor productivity, you would divide 80000 by 1500 which equals 53. This means that your company generates $53 per hour of work. You could also look at labor productivity in terms of individual employee contribution. In this case , instead of using hours as the input, you would use number of employees. Let\'s say your company generated $80000 worth of goods and services in one week with 30 employees. You would divide 80000 by 30 which equals 2666 ( meaning each employee produced $2666 for your company per week)
Industrial solution : while the u.s is preparing for 310 petrochemical projects and $ 185 billion in capital investment at the same time an experienced generation of workers retires, quality and productivity are becoming an even bigger challenge than the labor shortage, owners and contractors told petrochemical update
Gross domestic product (GDP) per capita is often used as the barometer when comparing labor productivity and the standard of living across countries. GDP per hour might be a better measure of labour productivity
MMultifactor productivity
academi work : each freight container can have from 40 cases to 20000 cases on it depending on the type of product on the container and have as many as 100 different SKUs . The freight mix has a dramatic impact on the time it takes to process the work. Depending on the container mix, CPH can vary from 20 cases per labor hour to over 400. Using CPH, the client was unable to have any consistancy in either its productivity or labor forecast requirements because they were not using other factors present in the data to more accurately calculate the labor standard
Industrial solution : consider one u.s plant managers experience at a company with extensive fabrication and assembly operations. For a long time, he was uncomfortable with the way his division was allocating it\'s annual $2 million productivity improvement budget. On being promoted to run all the divisions plants, he at once reviewed spending on productivity programs. Although direct labor accounted for only 10% of manufacturing costs, nearly 40% of the productivity budget was allocated to upgrading direct labor efficiency. His subordinates are now looking for ways to reduce overhead and make better use of technology.
