Professional Documents
Culture Documents
Submitted by
M. SARAVANAN
MADAGADIPET, PUDUCHERRY
BONAFIDE CERTIFICATE
This to certify that the project work entitled “A STUDY ABOUT PRODUCTIVITY
LEVELS IN NATURAL CAPSULES LIMITED” is a bonafide work done by
M.SARAVANAN [ REGISTER NO: 27348336 ] in partial fulfillment of the requirement for
the award of Master of Business Administration by Pondicherry University during the academic
year 2006 – 2008.
EXTERNAL EXAMINER
ACKNOWLEDGEMENT
First and foremost, I thank the God for his substantial blessing and mercy at all stages in
the completion of the project.
I extend the immense gratitude to the Head of the Department MR.S.JAYAKUMAR for
his motivation, inspiration, and encouragement for the completion for my project.
I also thankful to all other faculty members of the department for the constant co-
operations and encouragement in pursuing my project work.
The study was carried out at NATURAL CAPSULES LIMITED. The study is related
to the productivity levels. An analysis was taken among the various input in NCL to know their
productivity levels and studying relationship between revenue and cost in relation to sales
volume of a business enterprise.
The data required for the study were collected from both primary and secondary sources.
The primary data were collected through the personal interview and discussions with production
manager, administrator, cost accountant, etc., who were responsible for production department in
Natural Capsules Limited. The secondary data were collected mainly from of accounts, annual
reports and other publications of Natural Capsules Limited.
One of the main areas of the project is the analysis part, where the data are analysis
& interpretation was done, to find out how the factors of production are managed.
Different productivity measures and trend analysis were used to analysis the
productivity levels. And also Break even analysis and Margin of safety were analysed.
The study reveals that the data collected from the study conducted, is observed
the productivity levels are not satisfied in that organization. So the management
will control the different factors of production in future means the productivity
levels will be improved. By this productivity improvement the organization will be
more profitable.
And then conclusions, limitations & scope for further study were discussed.
CONTENT
LIST OF TABLES
LIST OF CHARTS
INTRODUCTION 1
PROFILE OF THE COMPANY 2
CORPORATE VISION & MISSION 3
I
PRODUCT 5
MANUFACTURING PROCESS 6
NEED FOR THE STUDY 9
II REVIEW OF LITERATURE 10
IV RESEARCH METHODOLOGY 21
VII CONCLUSION 49
BIBILIOGRAPHY 52
LIST OF TABLES
“Productivity is being better today than yesterday, and that tomorrow will be
better than today”
The concept of what is better and how to become better is changing. Productivity is now
seen to depend on the value of the products and services and the efficiency with which they are
produced and delivered to the customers.
Productivity is the result or the sum of all effort that it takes to deliver a product or
service. Productivity is frequently referred to as output and, to some degree, can be measured.
The output generated by a person, organization, or other entity is measured in terms of (the
number of) units or items produced and services performed within a specified time frame. Thus,
productivity is the economic value of goods and services. It becomes the value or result of the
"price" of a product or service minus all "costs" that go into the effort.
Total productivity is a productivity measure that incorporates all the inputs required to
make a product or provide a service. The inputs could be grouped in various categories as long as
they determine the total inputs required to produce an output.
PROFILE OF ORGANISATION
Natural Capsules Limited is a Public Limited Company established in the year 2003 at
Pondicherry, Its head quarters were located in Bangalore established in the year 1993. Natural
Capsules Limited is a well-equipped modern manufacturing plant to manufacture Hard Gelatin
Capsule shells, Hard Cellulose Capsule shells and Pharmaceutical Dosage Forms in Capsule
Dosage Form. The logical integration of NCL hard shell manufacturing to formulation was
initiated in the year 1998.
NCL is having an on going research and development activity to develop value added
products. The company has successfully exported Gelatin Capsules to mainly South-East Asian
countries. These capsules are also sold in domestic and also exported to several countries. The
Company meets the statutory requirements as laid down by the authorities in respect to cGMP
and cGLP practices. Since its inception, Natural Capsules has ensured to provide turnkey
solutions to all its customers.
The main objective of the company is to manufacture and market Hard Gelatin Capsule
shells and Hard Cellulose Capsule Shells
Vision Statement
Mission Statement
Natural Capsules believes in a mission to constantly innovate and produce products that
are an outcome of responses received from the market as well as its customers. Natural Capsules
assures to provide the Highest Quality products on a consistent basis both to its National and
International customers. “We truly believe in Relating Technology to Nature…..”
Organizational Chart
Natural capsule Ltd. Unit II – Puducherry.
MANAGING DIRECTOR
PRODUCTION UTILITY
SR. MANAGER QA MANAGER MANAGER
ANALYTICAL
CHEMISTS
ASST. MANAGER AIR ELECTRICIANS
CONDITIONING DEPT.
ASST.
MANAGER
PRINTING E.T.P
STORING
DEPT.
INCHARGE
PRODUCTS
About Products
NCL’s constant endeavor to research & most customer specific requirement has resulted
in manufacture of a wide range of capsules. The Cellulose capsules and newly introduced
variants form a part of NCl’s niche products. NCL’s facility of dedicated manufacturing lines
adopts stringent procedures to manufacture Hard Gelatin Capsules. Each of this manufacturing
line is housed as an independent unit to eliminate the risk of cross contamination.
NCL manufactures Hard Capsules for pharmaceutical and dietary supplement industries
in sizes 00, 0el, 0, 1, 2, 3 & 4. All operations are assured through our comprehensive QA
procedures to conform to Indian Pharmacopoeia and United States Pharmacopoeia standards and
the specific requirements of the customers.
PRODUCTS
Raw materials:
The main raw materials required for the manufacture of gelatin capsules is capsule grade
gelatin granules. This is proposed to be procured indigenously and is available in plenty in the
country today. The major manufacturers of gelatin granules in the country today are M/s.
Narmada Gelatin ltd., Chennai, Raymon Glue Chemicals, Baroda, M/s. Sterling Bio-tech., Ooty.
Process:
The gelatins are weighed as per the batch size and prepare the gel (paste) to the melter
mix for the purpose of uniform mix at a uniform temperature. From the metler mixer the paste
(gel) is loaded to the trollies which will be mounted on the capsulation machine. When machine
switched on the pin bars will move horizontally in the process these pin bars are moved in
different temperature monitors, which will helps in formation of capsules on the pin bars. Then
trimmer at other end of the machine will cut or trim the capsules to pre determined sizes. Then
the capsules body and cap will join automatically. These capsules are collected and packed on to
sorting department for sorting the defective ones. After sorting good quality capsules are sent to
packing section for final packing.
For a specific request from the buyers the capsules are overprinted as per their
requirements such as product name, brand name and logo’s of the respective companies.
End users:
The company proposes to manufacture empty hard gelatin capsules for use in the
pharmaceutical industry, Gelatin capsules are used for filling oral drugs and medicines, capsules
are generally manufactured in sizes 0,1,2,3,4 and5. the major areas of usage are analgesics,
antipyretics, non-steriods, anti-inflammatory, chemotherapy and antibiotics.
Process Flow Chart
Services we offer
* Contract Research in Synthetic Chemistry.
* Dosage Development.
* Dossier in CTD Format.
* Manufacturing of API’s and Finished Dosage Forms.
* Development of Dossiers/ ANDA’s for products of the customer’s choice.
* Contract Research and Analytical
* Online Enquiry
* Contract Manufacturing
* Chating Services
NEED FOR STUDY
This study helps the Natural Capsules Limited to identify the ways to
improve the productivity to the highest possible level and to reduce the maximum wastage
of resources and also helps to improve the profit level of that organization.
CHAPTER II
REVIEW OF LITERATURE
MEANING OF PRODUCTIVITY
Output
Productivity = -------------------
Input
For the survival of any organization, this productivity ratio must be at least 1. If it is more than
one, the organization is in a comfortable position. So, the objective of the organization should be
to identify ways and means to improve productivity to the highest possible level.
Definitions of productivity:
Productivity is a function of providing more and more of everything to more and more
people with less consumption of resources.
The volume of output attained in given period of time in relation to the sum of the direct
and indirect efforts expended in its production.
Material productivity
It shows the quantitative relationship between the total output and the material input
Labour productivity
It shows the quantitative relationship between the total output and the material input
It shows the quantitative relationship between the total output and the Capital input
Energy productivity
It shows the quantitative relationship between the total output and the Energy input
It shows the quantitative relationship between the total output and the other
manufacturing expenses input
Total productivity
It shows the quantitative relationship between the total output and the total resources input
(material, labour, capital, energy, and other manufacturing expenses)
Total productivity =
Total output
(Material +labour+ capital +energy+ other manufacturing expenses) input
INTERNAL FACTOR
o Product factor
o Plant and equipment
o Technology
o Material
o Energy
o Human factor
o Work method
o Management style
EXTERNAL FACTOR
o Government policies
o Infrastructure
o Natural resources
In this strategy, the output is increased while keeping the input constant. Let us assume
that in a steel plant, the layout of he existing shops is not proper. By slightly altering the location
of the billet-making section, i.e. bringing it closer to the furnace which produces hot metal, the
scale formation at the top of ladles can be reduced to a greater extent. The molten metal is
usually carried in ladles to the billet-making section. In the long run, this would give more yield
in terms of tons of billet produced. In this exercise, there is no extra cost involved. The only task
is the relocation of the billet-making facility by shifting it closer to the furnace which involves
insignificant cost.
In this strategy, the input is decreased to produce the same output. Let us assume that
there exists a substitute raw material to manufacture a product which has the required properties
and it is available at a lower price. If we can identify such material and use it for manufacturing
the product, then certainly it will reduce the input cost. In this exercise, the job of the purchase
department is to identify an alternate substitute material. The process of identification does not
involve any extra cost. So, naturally, the productivity ratio will increase because of the decreased
input by way of using the cheaper raw material to produce the same output.
Let us consider the reverse case of the previous example, i.e. dropping an uneconomical
product from the existing product mix. This will result in the following:
(a) There will be a decrease in the revenue of the organization because of dropping a
product from the existing product mix.
(b) There will be decrease in the material cost, and operation and maintenance cost of
machineries because of dropping an existing product from the product mix.
If we closely examine these two decreases, we find that the proportionate decrease in the
input cost will be more than the proportionate decrease in the revenue. Hence, there will be a net
increase in the productivity ratio.
Increase in the output with decrease in the input:
Let us assume that advanced automated technologies like, Robot, Automated Guided
Vehicle System (AGVS), etc., are available in the market which can be employed in the
organization of our interest. The outcome of these modern tools can be summarized as
followings.
(a) There will be a drastic reduction in the operation cost. Initially, the cost on equipment
would be very high. But, in the long run, the reduction in the operation cost would
break-even the high initial investment and offer more savings on the input.
(b) These advanced facilities would help in producing more number of goods because
they don’t experience fatigue. The increased production will therefore yield more
revenue.
In this example, there is an increase in the revenue while there is a decrease in the input in
the long run. Hence, the productivity ratio will increase at a faster rate.
For the productivity analysis, the indices of Material input, Labour input, Capital input,
Energy input, other manufacturing input and Total output have been calculated.
Break even analysis
Break even analysis is the method of studying relationship between revenue and cost in
relation to sales volume of a business enterprise.
According to Matz Curry & Frank “a break even analysis determine at what level cost and
revenue are in equilibrium”.
Contribution
It is a difference between sales and the variable cost of sales.
Contribution = Sales - variable cost.
It may be defined as that point of sales volume at which total revenue is equal to
total cost. It is the point of NO Profit and No Loss. If sales is increased behind these level there
shall be profit to the organization.
Companies can increase productivity in a variety of ways. The most obvious methods
involve automation and computation which minimize the tasks that must be performed by
employees. Recently, less obvious techniques are being employed that involve ergonomic design
and worker comfort. A comfortable employee, the theory maintains, can produce more than a
counterpart who struggles through the day. In fact, some studies claims that measures such as
drastic effect on office done by productivity. They suggest that productivity could be increased
by means of perfuming or deodorizing the air conditioning system of work place. Increase the
productivity also can influence society more broadly, by improving living strands, and creating
income.
The globalization of manufacturing and the increased concern about social and ecological
issues make productivity improvement more important. At the same time, a broader meaning of
productivity calls for a wider set of indicators to catch and reflect the new elements and
parameters involved. The broader conception of productivity is incorporating wider definitions of
what the outputs and inputs are of the production-distribution process. The social and ecological
impacts are now increasingly considered as outputs of the production process in addition to the
traditional physical and value measures of outputs. Similarly, the social and ecological costs are
now also being recognized as inputs in the productivity equation. With increasing concerns on
the social and ecologic impacts of the operations of enterprises, the definitions of what are inputs
and outputs are changing. Social and ecological inputs and outputs are increasingly being
factored-in the efficiency and effectiveness performance of the enterprise.
From the point of view of global manpower productivity - measured by the production/
potentially active population ratio - it is only possible to increase its value in the medium term by
increasing production (numerator of the fraction). The solution of deliberately reducing the
denominator fortunately has not been considered since the defeat of Nazism. It is an elementary
question that to maintain constant the number of busy or employed people, and at the same time
to increase the manpower productivity it is necessary to increase the production in the same
proportion. For a country with a growing potentially active population it is necessary to grow
even more in order to maintain the occupation rate. Exporting workers - which in a way we are
already doing - does not seem a desirable solution for a country with natural resources like Brazil.
CHAPTER III
PRIMARY OBJECTIVE:
SECONDARY OBJECTIVES:
To ascertain the value of sales at which the total cost are equal to revenue.
RESEARCH METHODOLOGY
RESEARCH
Research is a process in which the researcher wishes to find out the end result for a given
problem and thus the solution helps in future course of action. The research has been defined as
“A careful investigation or enquiry especially through search for new facts in branch of
knowledge”
RESEARCH DESIGN
The research design used in this project is Analytical in nature the procedure using, which
researcher has to use facts or information already available, and analyze these to make a critical
evaluation of the material.
Primary Sources
1. Data are collected through personal interviews and discussion with the administrator
production manager, accountant and who were responsible for production department of
NCL.
Secondary Sources
1. From the annual reports maintained by the company.
2. Data are collected from the company’s website.
3. Books and journals pertaining to the project.
PERIOD OF STUDY
The present study has taken into account Four years viz., 2001-2002 to 2004-2005.
B. TREND ANALYSIS
Break even analysis helps to know the relationship between the different cost.
CHAPTER V
TABLE 5.1.1
Material
3,06,60,847 3,11,37,954 3,79,64,809 5,15,63,400
Input
Material
1.99 1.96 2.01 1.92
productivity
Inference
This Material productivity table shows the quantitative relationship between the Material
input and the Total output (goods produced) of the company, which registered a fluctuating trend
throughout the study period from 1.96 to 2.01. This productivity varied from during the study.
The average productivity is 1.97, this implies that Natural Capsules Limited maintaining a
considerable level of material input in proportion to total output.
CHART 5.1.1
Material Productivity
2.02
2
1.98
1.96
1.94
1.92
1.9
1.88
1.86
2001 - 02 2002 - 03 2003 - 04 2004 - 05
TREND ANALYSIS
Y = a + Σ bX
Where a = Σ Y ; b = Σ XY
n Σ X2
MATERIAL PRODUCTIVITY
Material
x productivity XY
YEAR X = x – 2.5 X2
Y
a = 7.88 = 1.97
4
b = -0.08 = -0.01
5.90
TABLE 5.2.1
Labor
15.12 12.09 11.46 10.89
productivity
Inference
This Labor productivity table shows the quantitative relationship between the Labor input
and the Total output (goods produced) of the company, which registered a fluctuating trend
throughout the study period from 10.89 to 15.12. This productivity varied from during the study.
The average productivity is 12.39, this implies that Natural Capsules Limited
maintaining a considerable level of labor input in proportion to Total output
CHART 5.2.1
Labour productivity
16
14
12
10
0
2001 - 02 2002 - 03 2003 - 04 2004 - 05
TREND ANALYSIS
Y = a + Σ bX
Where a = Σ Y ; b = Σ XY
n Σ X2
LABOUR PRODUCTIVITY
Labor
x productivity XY
YEAR X = x – 2.5 X2
Y
a = 49.56 = 12.39
4
b = -6.62 = -1.66
5.90
Inference:
By using trend analysis we can found that the LABOUR PRODUCTIVITY for the year 2006-
2007 will be about 6.58
TABLE 5.3.1
Capital
10.24 10.25 11.18 12.69
productivity
Inference:
This Capital productivity table shows the quantitative relationship between the Capital
input and the Total output (goods produced) of the company, which registered a fluctuating trend
throughout the study period from10.24 TO 12.69. This productivity varied from during the study.
The average productivity is 11.09, this implies that Natural Capsules Limited
maintaining a considerable level of capital input in proportion to Total output
CHART 5.3.1
Capital productivity
14
12
10
0
2001 - 02 2002 - 03 2003 - 04 2004 - 05
TREND ANALYSIS
Y = a + Σ bX
Where a = Σ Y ; b = Σ XY
n Σ X2
CAPITAL PRODUCTIVITY
Capital
x productivity XY
YEAR X = x – 2.5 X2
Y
a = 44.36 = 11.09
4
b = 22.83 = 3.87
5.90
By using trend analysis we can found that the CAPITAL PRODUCTIVITY for the year 2006-
2007 will be about 24.63
TABLE 5.4.1
Energy
8.92 8.31 6.63 7.07
productivity
Inference
This Energy productivity table shows the quantitative relationship between the Energy
input and the Total output (goods produced) of the company, which registered a fluctuating trend
throughout the study period from 6.63 to 8.92. This productivity varied from during the study.
The average productivity is 7.73, this implies that Natural Capsules Limited maintaining a
considerable level of energy input in proportion to Total output
CHART 5.4.1
Energy Productivity
10
9
8
7
6
5
4
3
2
1
0
2001 - 02 2002 - 03 2003 - 04 2004 - 05
TREND ANALYSIS
Y = a + Σ bX
Where a = Σ Y ; b =Σ XY
n Σ X2
ENERGY PRODUCTIVITY
Energy
x productivity XY
YEAR X = x – 2.5 X2
Y
a = 30.93 = 7.73
4
b = -3.61 = -0.61
5.90
By using trend analysis we can found that the ENERGY PRODUCTIVITY for the year
2006-2007 will be about 5.59
5.5 OTHER MANUFACTURING EXPENSES PRODUCTIVITY
TABLE 5.5.1
Other 24,85,315
manufacturing 18,19,725 21,93,140 22,63,450
expenses input
Other
manufacturing
33.66 27.96 33.69 40.02
expenses
productivity
Inference
This other manufacturing expenses productivity table shows the quantitative relationship
between the other manufacturing expenses input and the Total output (goods produced) of the
company, which registered a fluctuating trend throughout the study period from 27.96 to 40.02.
This productivity varied from during the study.
The average productivity is 33.83, this implies that Natural Capsules Limited maintaining
a considerable level of other manufacturing expenses input in proportion to Total output
CHART 5.5.1
45
40
35
30
25
20
15
10
5
0
2001 - 02 2002 - 03 2003 - 04 2004 - 05
TREND ANALYSIS
Y = a + Σ bX
Where a = Σ Y ; b = Σ XY
n Σ X2
Other
manufacturing
x expenses XY
YEAR X = x – 2.5 X2
productivity
Y
2001-2002 1 -1.5 2.25 33.66 -50.94
a = 135.33 = 33.83
4
b = 11.96 = 2.03
5.90
Inference:
By using trend analysis we can found that the OTHER MANEFACTURING EXPENSES
PRODUCTIVITY for the year 2006-2007 will be about 38.91
TABLE 5.6.1
Material input
3,06,60,847 3,11,37,954 3,79,64,809 5,15,63,400
Labor input
40,51,302 50,68,318 66,53,065 91,33,496
Capital input
59,82,948 59,80,562 68,19,867 78,36,192
Energy input
68,61,514 73,79,506 11,493,432 1,40,63,214
other manufacturing
18,19,725 21,93,140 22,63,450 24,85,315
expenses inputs
Inference
This total productivity table shows the quantitative relationship between the total input
(total resources used for production) and the Total output (goods produced) of the company,
which registered a fluctuating trend throughout the study period from 1.24 to 1.17. This
productivity varied from during the study.
The average productivity is 1.19, this implies that Natural Capsules Limited
maintaining a considerable level of total input in proportion to Total output.
CHART 5.6.1
TOTAL PRODUCTIVITY
1.26
1.24
1.22
1.2
1.18
1.16
1.14
1.12
2001 - 02 2002 - 03 2003 - 04 2004 - 05
TREND ANALYSIS
Y = a + Σ bX
Where a = Σ Y ; b = Σ XY
n Σ X2
TOTAL PRODUCTIVITY
Total
x productivity XY
YEAR X = x – 2.5 X2
Y
a = 4.75 = 1.19
4
b = -0.11 = -0.02
5.90
Inference
By using trend analysis we can found that the TOTAL PRODUCTIVITY for the year 2006-
2007 will be about 1.12
INFRENCE
In above table shows the data for different years from 2001-02 to 2004-2005.
It shows the sales volume of the organization.
Variable cost includes material, labour, energy and other manufacturing cost.
Fixed cost includes repair & maintenance and depreciation.
Sample calculation for the period of 2001-2002
TABLE 5.7.2
BREAK EVEN ANALYSIS
Margin of safety
73.70 % 79.44 % 84.99 % 81.18 %
Ratio
INFERENCE:
This table shows Contribution, P/V Ratio, Break even sales, are in increasing trend from
2001-2002 to 2004-2005 for the organization.
Margin of safety & margin of safety ratio also shows increasing trend from 2001-2002 to
2003-2004 but in the year 2004-2005, shows decline
RELATIONSHIP CHART BETWEEN BREAK EVEN SALES, MARGIN
OF SAFETY & ACTUAL SALES
CHART 5.7.1
120000000
100000000
80000000
60000000
40000000
20000000
0
2001-2002 2002-2003 2003-2004 2004-2005
It is founded that, there is a variation in the material productivity from 1.99 to 2.01
we found a small deviation in material productivity, it clearly shows that the NCL
company will not utilize the material input at an optimum level, they utilize some
what better but not an optimum.
The labour productivity showing decreasing trend from 15.12 to 10.89 in the year
2001-02 to 2004-05, the forecast labour productivity for the year 2006-07 is 6.5, the
forecast labour productivity is also shows decline trend continues so it clearly shows
that there is no effective utilization of labour resource.
The energy productivity showing decreasing trend from 8.92 to 7.07 in the year 2001-
02 to 2004-05, the forecast labour productivity for the year 2006-07 is 5.59, the
forecast energy productivity is also shows decline trend continues so it clearly shows
that there is no effective utilization of energy resource.
The capital productivity showing increasing trend from 10.24 to 12.69 in the year
2001-02 to 2004-05, if we forecast the capital productivity in the year 2006-2007 it
shows 24.63, so since it is a increasing trend it shows that the NCL company will use
the Capital input effectively.
The total productivity in NCL for all the years is above one, if the total productivity is
above one the company is in normal position, but the total productivity showing
decreasing trend from 1.24 to 1.17, the forecasting total productivity for the year
2006-07 is 1.12, it clearly tells there is decrease in total productivity, from this we can
conclude the company is not achieving the optimum level of total productivity.
This different productivity measures tells that NCL company used the capital input
and the other manufacturing expenses input some what better comparing to other
inputs.
From this it is clearly found that labour input and energy input are not effectively used
to produce the output. Due to that lack of control in labour and energy input, the
company will not reach the optimum productivity level.
The break even sales shows Rs. 1,73,92,291 and the company actual sales is
6,61,53,810, the company will sell above the break even sales so, it is clearly found
that the company runs in the profitable position.
The Margin of safety ratio showing increasing trend from 73.70 % to 84.99 % in the
year 2001-02 to 2003-04, but in 2004-05, margin of safety ratio will decreased to
81.18 %.
SUGGESTIONS AND RECOMMENDATIONS
The substitute raw material to manufacture a product which has the required
properties and it is available at a lower price. If we can identify such material and
use it for manufacturing the product, then certainly it will reduce the input cost.
So, naturally, the productivity ratio will increase because of the decreased input by
way of using the cheaper raw material to produce the same output.
Proper planning and control of material will help to use the material effectively,
result in increased output, Finally, Material productivity is also increasing.
Try to maximum wastage elimination and Material recycling & reuse will help to
increase the output result in material productivity improvement.
Education, training and development are the basic foundation for raising Labour
productivity levels. The acquisition of expertise through education and training,
coupled with the best equipment and resources within an efficient and safe
environment, can be maximized by developing employees into people who want
to learn, who want to work at their potential, and who want to continuously
improve, These factors are best achieved when an employee is motivated to take
pride in the work he or she does. A motivated, self-starting employee is one who
adds value to an organization and contributes to the overall productivity of him or
herself, a work group in an organization.
Utilize the labour effectively will increase the output result in improvement in
labour productivity.
Eliminate the unwanted labour will decrease the labour input cost, This also result
in increase in labour productivity.
The only way to improve the total productivity is to increase the output with
same input by effective utiliasition of all the factors of production (Material,
Labour, Energy, Capital, and Other manufacturing expenses).
In NCL, Material, Labour, and Energy inputs are in decline stage so, if they
utilize this three inputs effectively then automatically it will increase the
output then result in total productivity improvement.
When all factors operate at optimum, the productivity is said to be at its
highest level, so NCL operate its factor at a optimum point then they achieve
the highest productivity level.
CHAPTER VII
CONCLUSION
From the study it was found that the productivity levels in Natural Capsules Ltd is not
optimum level. Thus it can said that management can improve the productivity level by effective
use of resources. High productivity refers to doing the work in a shortest possible time with least
expenditure on inputs without satisfying quality and with minimum wastage resource. So, this
helps the management to achieve the optimum level of profit.
Any one need not search for opportunities for productivity improvement, they exist in
every workplace situation all of the time. It's for managers, supervisors, trainers and employees at
any level who wish to develop their understanding of productivity and their ability to improve the
efficiency and utilization of resources in their organizations and who see achieving targets and
budgets as merely minimum starting standards.
Due to the lack of time I cannot get the data for monthly wise.
All the data are expressed in the value of cost & not in terms of unit.
The study does not take into the account for the inflation.
8.2 SCOPE FOR FURTHER STUDY
Productivity improvement result in lower cost per unit by effective utilization of all the
resource & reducing wastages.
References
1. Martand Telsang “Industrial Engineering & Production Management” S Chand & Co.
2. R.Paneerselvam “Production & Operations Management” Prentice hall Of India Private
Ltd.
3. B.M. Lall Nigam I.C. Jain “Cost Accounting” Prentice hall Of India Private Ltd.
4. S.P. Iyengar “Cost & Management Accounting” Sultan Chand & Sons.
5. www.naturalcapsules.com