Productivity of Work(01)

 What is productivity?
 The first time the word "productivity" was mentioned was in
an article by Quesnay in the year 1766
 In 1883, Littre defined productivity as the "faculty to
produce," that is, the desire to produce
 The early twentieth century (1900s), that the term acquired
a more precise meaning as a relationship between output
and the means employed to produce that output.

PRODUCTIVITY
Muhammad Ragil Suryoputro, S.T., M.Sc.

Productivity of Work(02) Productivity of Work(03)

 In 1950, the Organization for European Economic  In 1962, fabricant mentioned productivity is always a ratio of
Cooperation (OEEC) [ 1950] offered a more formal output to input
definition of productivity:  In 1976, Siegel defined productivity as a family of ratios of
 Productivity is the quotient obtained by dividing output output to input
by one of the factors of production. In this way it is  Sumanth, in 1979, defined total productivity is the ratio of
possible to speak of the productivity of capital,
tangible output to tangible input
investment, or raw materials according to whether output
is being considered in relation to capital, investment or  Conclusion is:
raw materials, etc..  Productivity is the ratio of some output to some input
 In 1955, Davis defined productivity as the change in
Output
product obtained for the resources expended Pr oductivity 
Input

Productivity of Work(04) Productivity of Work(05)

 Productivity is not a measure of production or output produced.  If viewed in quantitative terms, production is the quantity of
It is a measure of how well resources are combined and utilized output produced, while productivity is the ratio of the output
to accomplish specific, desirable results.
produced to the inputs used.
Output Re sult achieved
Pr oductivity    Example 1. Suppose that a company manufacturing electronic
Input Re sources consumed
 The term "productivity" is often confused with the term calculators produced 10,000 calculators by employing 50
"production." Many people think that the greater the people at 8 hours/day for 25 days. Then, in this case,
production, the greater the productivity. This is not necessarily Production = 10,000 calculators
true.
 Production is concerned with the activity of producing goods
and/or services. 10,000 calculator s
 Productivity is concerned with the efficient utilization of Pr oductivity (of labor )   1 calculator / man  hour
50  8  25 man  hours
resources (inputs) in producing goods and/or services (output).

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Productivity of Work(06) Productivity of Work(07)

 Suppose this company increased its production to 12,000  We can easily show, by similar computations, that there could
calculators by hiring 10 additional workers at 8 hours/day for have been other extreme cases wherein the labor productivity
25 days. Then, the went down even though production went up; or, the labor
Production = 12,000 calculators productivity went up along with the production.
 The point is that an increased production does not necessarily
12,000 calculators
Pr oductivity (of labor )   1 calculator / man  hour mean increased productivity.
60  8  25 man  hours
 Example 2. Let’s say 10 units of output were produced using 5
units of labor, then:
 Clearly, the production of calculators has gone up 20 percent
(from 10,000 to 12,000), but the labor productivity has not
gone up at all. 10
Pr oductivity   2.0
5

Productivity of Work(08) Production and Productivity

 Let’s also say that in a following period of time 12 units of
output were produced in the same work situation, using 6 units  Production is concerned with the activity of producing
of labor, then: goods and/or services.
12
Pr oductivity   2.0
6  Productivity is concerned with the efficient utilization
of resources (inputs) in producing goods and/or
 To improve productivity we must accomplish one or more of
following changes: services (output).
 Maintain the same level of output while at the same time reducing the
input or consumption of resources
 Maintain the same level of input while at the same time increasing the
output
 increasing the level of output while at the same time decreasing the input

Productivity of Work(09) Productivity of Work(10)

 Quite often the terms productivity, efficiency, and effectiveness are  Mali [1978] brings together the terms productivity,
confused with each other.
 Efficiency is the ratio of the actual output attained to standard output effectiveness, and efficiency in the following manner:
expected
 For example, if the output of an operator is 120 pieces per hour while
output obtained
Pr oductivity Index 
the standard rate is 180 pieces per hour, the operator's efficiency is input exp ended
said to be 120/180 = 0.6667 or 66.67 percent.
 Effectiveness is the degree of accomplishment of objectives.
 In other words, how well a set of results is accomplished reflects the performance achieved effectiveness
effectiveness, whereas how well the resources are utilized to accomplish the  
results refers to the Efficiency. resources consumed efficiency
 Productivity is a combination of both effectiveness and efficiency, since
effectiveness is related to performance while efficiency is related to
resource utilization

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Efficiency and Effectiveness Efficiency and Effectiveness

 Efficiency is the ratio of the actual output attained to standard output expected
1. Efisiensi = Mengurangi waktu siklus
◦ For example, if the output of an operator is 120 pieces per hour while the standard
rate is 180 pieces per hour, the operator's efficiency is said to be 120/180 = 0.6667
or 66.67 percent. 2. Efisiensi = Job Combine

 Effectiveness is the degree of accomplishment of objectives. 3. Efisiensi = Inovasi

In other words, how well a set of results is accomplished reflects the effectiveness, whereas
how well the resources are utilized to accomplish the results refers to the Efficiency. Penggunaan/pemakaian input (sumber daya) untuk
Productivity is a combination of both effectiveness and efficiency, since effectiveness is menghasilkan output standar yang diharapkan.
related to performance while efficiency is related to resource utilization

Faktor – faktor yang Mempengaruhi

Efficiency and Effectiveness
Produktivitas
 Pendidikan
 Ketrampilan dan kemampuan
 Sistem manajemen
 Teknologi yang digunakan
 Sarana produksi
 Iklim lingkungan kerja
 Sikap dan cara kerja
 Kesehatan dan gizi kerja
Tingkat pencapaian terhadap tujuan dari  Jaminan Sosial
suatu pekerjaan.

Contoh Pengukuran Produktivitas

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Productivity of Work(11) Productivity of Work(12)
 There are two basic types of productivity:  Example 3. Consider the ABC Company. The data for output
1. Partial Productivity produced and inputs consumed for a particular time period are
 Partial productivity is the ratio of output to one class of given below:
input. For example, labor productivity (the ratio of output to  Output = $ 1000
labor input) is a partial productivity measure. Similarly,
 Human input = 300
capital productivity (the ratio of output to capital input) and
material productivity (the ratio of output to materials input)  Material input = 200
are examples of partial productivities.  Capital input = 300
2 Total Productivity  Energy input = 100
 Total productivity is the ratio of total output to the sum of all
 Other expense input = 50
input factors. Thus, a total productivity measure reflects the
joint impact of all the inputs in producing the output. It is assumed that these values are in constant dollars with
respect to a base period. Then the partial and total
productivity values are computed as follows:

Productivity of Work(13) Productivity of Work(14)

 Partial productivities:  Total Productivity :

output 1000
Humanproductivity    $ / $3.33
humaninput 300 Total output
Total productivity 
( human  material  capital  energy  other exp ense)input
output 1000
Materialproductivity    $ / $5.00
materialinput 200

output 1000
Capitalproductivity    $ / $3.33 1000 1000
capitalinput 300 Total productivi ty    $ / $1.053
300  200  300  100  50 950
output 1000
Energyprod uctivity    $ / $10.00
energyinput 100
output 1000
Other exp enseprod.    $ / $20.00
other exp enseinput 50

Measurement Model of Productivity OBJECTIVE MATRIX (OMAX) MODEL(01)

 Objectives Matrix (OMAX) Definition block

 OMAX is a partial productivity measurement
developed for controlling productivity in the each part
of firm system based on criteria of productivity.
 This method was developed by James L. Riggs (Dept. of
Industrial Engineering at Oregon State University) in Quantification
1980. block

Weight and value

block

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Objective Matrix (OMAX) Model(02) Objective Matrix (OMAX) Model(03)
Pr oductivity criteria
 Example:
Measured Performanc e No. Productivity units 1 January 2003 Measured
criteria performance on
Expected performance The worst Expected Based 30 dec.2003
performance performance performance

Scores 1. Speed of service min./man 10 2 4 3

2. Lateness min./day 60 10 45 30

Based performanc e 3. Queuing man 8 2 5 5

4. Idle time minute 60 15 30 40

Worst performanc e 5. Absent man/day 10 2 4 5

Scores 6. Complain man/wk 7 0 5 2

Weight

Value  Pr oductivity indicator

Objective Matrix (OMAX) Model(04)

Pr oductivity indicator  Based performance
Index of performance   100%
Based performanc e

Pr oductivity indicator  300

Index of performance   100%
300
Pr oductivity indicator  a sum of all values
 120  180  30  30  30  70
 460
Value  score  weight

460  300
Index of performance   100%  53.33%
300

Model of Marvin E. Mundel(01) Model of Marvin E. Mundel(02)

AOMP  This model measures total productivity by comparing between

current performance index productivity in Measured Period and Base Period
PI  AIMP  100   100  Index of Productivity in base period is 100 so that there are
AOBP base performance index three states of index of productivity in measured period:
AIBP  IP < 100. It means that the productivity in measured period
AOMP  Agregated Output , Measured Period
less than base period
AOBP  Agregated Output, Base Period  IP = 100. It means that the productivity in measured period
equals base period
AOMP  IP > 100. It means that the productivity in measured period
outputs index more than base period
PI  AOBP  100   100
AIMP inputs index  The better the productivity, the higher the IP. The IP is always
more than 100
AIBP
AIMP  Agregated Inputs , Measured Period
AIBP  Agregated Inputs, Base Period

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Model of Marvin E. Mundel(03) Model of Marvin E. Mundel(04)
 Example: Lion Air has data as follow:

No Statement 2008 2009  Solution:

.
1. Statements of output:
1. Ticketing 10 billion 15 billion
2. Direct labor cost 4 billion 5 billion
 Ticketing
3. Indirect labor cost 2 billion 3 billion  Cargo service
4. Cargo service 2 billion 1.4 billion  VIP flight service
5. Overhead cost 1 billion 700 million
6. VIP flight service 500 million 600 million 2. Statements of input:
7. Building cost for rent 1.5 billion 2 billion  Direct labor cost
8. Maintenance cost 800 million 500 million
9. Administration cost 200 million 300 million
 Indirect labor cost
 Overhead cost
 Building cost for rent
 Determine: AOMP,AOBP,AIMP,AIBP,CPI,BPI,OI,II and IP
 Maintenance cost
 Administration cost

Model of Marvin E. Mundel(05) LATIHAN

 AOMP = 15 + 1.4 +0.600 (billion) = 17 billion  Group 3-4 orang.
 AOBP = 10 + 2 + 0.500 (billion) = 12.5 billion  Quality Assurance Department, Weight is 35, 35 and 30

 AIMP = 5 + 3 + 0.700 + 2 + 0.500 + 0.300 = 11.5 billion

 AIBP = 4 + 2 + 1 + 1.5 + 0.800 + 0.200 = 9.5 billion

AOBP 12.5 AOMP 17
BPI    1.32 CPI    1.48
AIBP 9.5 AIMP 11.5

AOMP 17 AIMP 11.5

OI    1.38 II    1.2
AOBP 12.5 AIBP 9.5
AOMP 17
IP2009  AIMP 100  11.5  100  112.35%
AOBP 12.5
AIBP 9.5

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