PRODUCTIVITY MEASURES: A SIMPLE NUMERICAL ILLUSTRATION

All Values Annualized

Product 1

Product 2

Product 3

TOTAL

10500

9000

8000

27500

Human Input

1000

1500

2000

4500

Material Input

3000

2000

2500

7500

Capital Input

2500

3500

1000

7000

500

1000

500

2000

TOTAL INPUT

7000

8000

6000

21000

TOTAL PRODUCTIVITY

1.50

1.13

1.33

1.31

Factored Output

7000

6000

5000

18000

Factor Input

3500

5000

3000

11500

TOTAL FACTOR PRODUCTIVITY

2.00

1.20

1.67

1.57

Labour Productivity

10.50

6.00

4.00

6.11

Material Productivity

3.50

4.50

3.20

3.67

Capital Productivity

4.20

2.57

8.00

3.93

OUTPUT

Other Expenses & Services

LEGEND
Total Input = Sum of Human, Material, Capital & Other Inputs
Total Productivity = Total Output/Total Input
Factored Output = Total Output less Material and Service Inputs
Factor Input = Sum of Human and Capital Input
Total Factor Productivity = Factored Output/Factor Input

Partial Productivity = Total Output/ Input Value for that Factor