With the availability of values of multifactor productivity of two plants, identify the plant which is performing with higher productivity. Concept Introduction: The term productivity is used to denote the ratio of output to input in percent. The output and input must refer to the same resource say labor, machine hours, quality, etc. This indicates single factor productivity because it relates to only one resource of the process. However, it is possible to design productivity measures for more than one factors and such productivity index is, then called multi-factor productivity. (It could be given any other term by the organization e.g. overall productivity etc.).

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Chapter 2, Problem 13P

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Interpretation: With the availability of values of multifactor productivity of two plants, identify the plant which is performing with higher productivity.

Concept Introduction: The term productivity is used to denote the ratio of output to input in percent. The output and input must refer to the same resource say labor, machine hours, quality, etc. This indicates single factor productivity because it relates to only one resource of the process.

However, it is possible to design productivity measures for more than one factors and such productivity index is, then called multi-factor productivity. (It could be given any other term by the organization e.g. overall productivity etc.).

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