Productivity
Productivity measures output achieved relative to an input used, such as units per labour hour or orders processed per employee. Define both quantities and ensure quality and product mix are comparable. It differs from a standard-hour efficiency percentage unless explicitly converted to that form. Higher measured productivity can result from equipment, skills, mix or quality shortcuts, so investigate causes and combine it with service and quality measures.
Worked example
A team produces 1,000 acceptable units using 200 labour hours, giving five units per hour. If the next period produces 1,200 acceptable units in the same hours, productivity rises 20%.
Common mistake
Do not label faster defective output an unqualified improvement or compare unit rates for products with different work content without adjustment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
