PRODUCTIVITY MANAGEMENT.

Abstract

It is important that cost engineers properly use the terms production and productivity. Production refers to total quantities produced in a period of time while productivity refers to quantities produced per employee hour of effort (hereinafter called work-hour). While production is of importance in terms of satisfying a requirement within a given period, this production may be achieved with varying productivity. Poor productivity results in higher unit costs; good productivity is the goal and is the subject of this session.