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Productivity

Productivity is a measure indicating how much output can be produced with a certain input. Output usually refers to the total production or added value of a company, a sector, or the entire economy. The input can be divided into labor, capital, and intermediate consumption, which includes the use of energy, materials, and services. There are different types of productivity, such as labor productivity, capital productivity, and multifactor productivity. Labor productivity measures the amount of output per unit of labor.

 

 

How productive is an employee? Productivity shows the extent to which an employee is actively engaged during available hours. In other words, the ratio between total net hours and direct hours (the total hours an employee is working and the direct hours assigned to an operation).
100 / total net hours * direct hours

 

materialoperationratioemployeeproductivitydirect hours