Business Time Lecture: Production and Productivity

Introduction

• Presenter: Melisha
• Topics: Production and Productivity

Production

• Definition:
  • Process of using inputs (e.g., materials) and converting them into goods and services (outputs).
  • Involves creation or conversion of raw materials into finished or semi-finished goods.
• Examples:
  • Dressmaker converting cloth to a dress.
  • Chef using raw ingredients (chicken, rice) to prepare a dish.

Productivity

• Definition:
  • Measure of how much output can be produced from a given level of input.
  • High productivity is when a unit of input yields a good amount of output.
• Examples:
  • Number of uniforms a dressmaker can sew in an hour.
• Key Points:
  • Productivity involves labor, machinery, and capital.
  • Enhanced by new machinery/equipment and worker training.
  • Productivity is crucial for higher output, rising income, and greater business profits.

Increasing Productivity

Training and Education

• Importance:
  • Trained workers are more productive.
  • Example: A tailor increases production from 15 to 30 uniforms per day after training.

Improving Labor Supply

• Definition:
  • Number of hours laborers are willing to work at a given wage rate.
• Method to Increase:
  • Raise wage rate to incentivize longer work hours.

Human Resource Development

• Definition:
  • Enhancing workforce via training and education.
• Methods:
  • On-the-job and off-the-job training.
  • Providing opportunities for further study.

Positive Work Ethic

• Definition:
  • Belief in hard work and doing tasks to the best of one’s ability.
• Impact:
  • Workers with good work ethics are more productive.
  • Employers prefer and promote individuals with strong work ethics.

Use of Capital (Machinery)

• Comparison:
  • Capital-intensive workplaces (use of machinery) vs. labor-intensive workplaces.
• Benefit:
  • Machinery can enhance productivity by working faster and producing more.

Conclusion

• Summary:
  • Understanding production and productivity is vital for business success.
  • Productivity leads to higher outputs and profits.
• Closing Remarks:
  • Importance of productivity in organizational success.
• Next Session: Encouragement to continue learning.

Note: Ensure to develop good work ethics and strive for continuous learning to increase personal productivity.