Basic Manufacturing Process - Ch. 9.4

Q.7. Give the two examples of fixed position layout.                    (AKTU. 2011 - 12)
Ans. Ship, Road working.

Q.8 What do you mean by production and productivity briefly describe and differentiate them also give the advantage of productivity.
Related Questions -
Q.     What are the differences between production and productivity? (AKTU. 11 - 12)
Ans. Production: -
The word “Production” is often used interchangeably with the word “Manufacturing”. Whereas the term “Manufacturing Engineering” is widely used in U.S.A., the equipment term “Production Engineering” is prevalent in Europe and Japan. The word “Manufacturing” is derived from the Latin words ‘manus’ and ‘factus’ meaning hand and made respectively, that is, the literal meaning is ‘made by hand’. However, in the modern sense, the word ‘production’ or ‘manufacturing’ means making of goods or articles from raw materials by hand and/or machinery by following a well-defined plan for each activity required. Thus “Manufacturing Engineering” or “Production Enginnering” may be defined as the art of making components and machines of specified quality on the planned production scale with the minimum consumption of materials and maximum productivity of labour. The word ‘Product’ means something that is produced. Production does not mean the making of only goods but in general it includes services also. Quantitatively, the word ‘production’ means quantity produced of goods or services, that is, volume of production.
Productivity: -
For any manufacturing enterprise, the input resources are : men, money, materials, machinery, time, energy and space etc. The output is : the manufactured goods and/or services. The main aim of the management is to earn profits. so, the company endeavours to produce the goods at the minimum possible competition. Hence, the management is always concerned with obtaining the most productive utilization of input resources. The degree of effectiveness of utilization is often measured by the familiar equation :

In manufacturing and production systems, we use the term “Productivity” in place of efficiency. Thus,
Productivity can be defined as the ratio between the output of goods or services and the input of resources. That is,

Thus productivity refers to a comparison between the quantity of goods or services produced and the quantity of resources employed in turning out these goods or services. When the same resources that were employed in the past now produce more than they did before, it means that productivity has increased. Hence, to establish whether and how much productivity is changing, take into account the relationship between what comes “out” of production and what goes “in” to production, that is, the ratio between output and input. So,

Thus higher productivity means producing more with the given input resources or producing a given quantity with lesser input resources. Thus productivity basically measures operating efficiency.
It follows from the definition that higher the productivity, lesser will be the cost of production for a given amount of input resources. Thus, there is reciprocal relationship between productivity and cost of manufacturing. For getting higher productivity, the wastage of input resources must be eliminated if possible or minimized, if not.
So, productivity may be defined as the optimum utilization of all the resources of organization : men, money, materials, machinery, energy, space and technology, etc. Output per employee per hour, in all phases must be maximized. The manufacturing enterprise must costantly strive for higher productivity. Economy and efficiency in every aspect of the production process is the key to higher productivity. Two of the major resources that should be optimally planned are : human resources and equipment.
Difference Between Production and Productivity: -
The two terms entirely different from each other and this difference should be clearly understood. Whereas production is an absolute concept, productivity is a relative concept. Production reflects the volume of production of goods/services by an enterprise, whereas productivity reflects the operating efficiency of the enterprise. While defining production, no reference is made to the quantity or quality of input resources. But, once the concept of efficiency with which the input resources are utilized, is incorporated, we enter the field of productivity.
Increased productivity should not be confused with increased production. Production can be increased by increasing the input resources. But productivity may remain the same, or decline due to inefficient use of inputs. Similarly, productivity can be improved by the economic and efficient use of input resources, but the production may not increase.
Advantages of Productivity: -
Higher the productivity, greater will be the property and vice-versa. So, in a world of competition, the only golden rule to survive is higher production and higher productivity with the given input resources.
Higher productivity leads to many benefits :
1. Cost of production decreases which makes the goods available to the public, cheaper.
2. Lower cost of production and increased production increase profits of a company.
3. Brings prosperity to a society/nation due to economic growth and social progress.
4. Increased productivity in a growing economy will ultimately help in increasing employment by stimulating the development of industry.
5. Employees can get better wages and improved working conditions.
6. Our exporting companies would be in a better position to compete in foreign markets and earn more foreign exchange. 

                                                                                                                       Next Page