oboloo Glossary

Measuring Productivity In Manufacturing

oboloo Glossary

Measuring Productivity In Manufacturing

Productivity in manufacturing is the measure of how efficiently resources are being used. It is typically represented as the ratio of the output produced to the inputs applied in the process, such as labor and raw materials. Productivity describes a process or system’s ability to maximize an organization’s goals while still using the least amount of resources. Knowing this number can help a business optimize its production and minimize costs. Measuring productivity in manufacturing can be done in several ways, including labor hours, machine hour rates, efficiency ratios, and total quality management measures.