productivity measures are generally classified into three types number one the partial productivity measures or PPM number two the total productivity measures or TPM and number three the total Factor productivity measures or tfp depending upon the individual input partial productivity measures are expressed as partial productivity equals to Total output divided by the individual input partial product tivity measures include number one labor productivity which is obtained by dividing the total output by labor input the labor input is measured in terms or man hours number two Capital productivity which is obtained by dividing the total output by Capital input number three material productivity which is obtained by dividing the total output by material input number four energy productivity which is obtained by dividing the total output by energy input one of the major disadvantages of partial productivity measures is that there is an overemphasis on one input factor to the extent that other inputs are underestimated or even ignored this cannot represent the overall productivity of the firm the total productivity measure is based on all the inputs this model can be applied to any manufacturing organization or Service Company the total productivity is obtained by dividing the total tangible output by the total tangible input here the total tangible output is obtained by adding the value of finished goods produced the value of partial units produced the dividends from Securities interest and other income the total tangible input equals to value of human plus material plus Capital energy and other inputs used the word tangible here refers to measurable the output of the firm as well as the input must be expressed in a common measurement unit the best way is to express them in rupee value to compare productivity indices are be adjusted to the base year and must be stated in terms of basee rupe value this is referred to as deflating the input and output factors deflators are used to nullify the effect of changing the price from one year to another so how do we get the value of deflator deflator value is obtained by dividing the current year price by the deflator base year price now let's look at the features of total productivity measures number one total productivity measure gives both firm level and detailed unit level index number two it helps to find out the performance and productivity of the operational unit number three it helps to plan evaluate and control number four this is an important information to strategic planners regarding EXP expansion or phasing out decisions so now that we have discussed about partial and total productivity measures let's move forward to discussing the total Factor productivity measure or tfp the total Factor productivity measure is the ratio of net output to the labor and capital or factor input the total Factor productivity is obtained by dividing the net output by the summation of Labor and capital inputs now that we have discussed about the three types of productivity measures let's look into the advantages and limitations of productivity measures the partial productivity measure or PPM is easy to understand and calculate it is a tool to pinpoint Improvement but PPM can be misleading if used alone because it has no consideration of the overall impact the total productivity measure or TPM is an easy and more accurate representation of the total picture of the company it is easily related to Total costs and it considers all quantifiable outputs and inputs but in the case of total productivity measures there is difficulty in obtaining the data so there is requirement of special data collection system finally in case of the total Factor productivity measure or tfp data from company records is relatively easy to obtain and uses a value added approach but in tfp there is no consideration for material and energy input and it is difficult to relate value added approach to production efficiency