PRESENTED BY:-

SARVESH UPADHYAY ROLL NO.132543 VIJAY GAIDHANKAR ROLL NO.132507 ANIL PRAJAPATI

ROLL NO.132531

SUBJECT:-

SUMANTH’S TOTAL PRODUCTIVITY MODEL

INTRODUCTIONAbout Dr. Sumanth’s Dr. David J. Sumanth’s in Miami, Florida, offers information and

lectures on productivity management, job creation, and technology management. He founded the International Conference series on Productivity & Quality Research, and chaired the first 5 conferences from 1987 to 1995. He also founded the International Society for Productivity and Quality Research in 1993, and serves as chairman of its board.

Dr. David J. Sumanth is professor and founding director (since 1979) of the Productivity Research Group at the University of Miami.

Dr. Sumanth's book, "Productivity Engineering and Management," published by McGraw-Hill (New York, 1984; Singapore, 1985; Mexico, 1990; India, 1990, New York, 1994) has become a "classic," having influenced "productivity engineering" thinking in 25 countries, and has helped initiate new courses on the subject.

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Productivity’ is a concept of production system and measures its success. It is the standard that indicates measures how efficiently the material, the labour, the capital and the energy can be utilized. Analysis and measurement of ‘Productivity’ can help to know the areas for taking corrective actions towards planning of business firm.

Simply, Productivity is known as the relationship between output and all employed inputs measured in real terms. It refers to a comparison between what comes out of production and what goes into production that is the arithmetical ratio between the amount produced and the amount of all resources used in terms of manufacture. It may be measured for manufacturing organizations or their departments for which separate records are maintained.

What is Productivity? The least controversial definition of productivity is

that it is a quantitative relationship between output and input. This definition enjoys general acceptability because of two related considerations.

first of all, both the output of the firm as well as the inputs must be stated in a common measurement unit, usuallly in monetary values.

Secondly, in order to compare the productivity indexes between different periods, each index must be adjusted to a base period value. this kind of deflation is used because different monetary values ,such as wages and prices, vary significantly from year to year.

The success of an industrial organization is determined by the level of efficiency in reducing cost and providing consumer services. Analysis and Measurement of

Productivity can help to find out the areas where the corrective steps will have been

taken in the way of planning of business firm. So far the manufacturing process is

concerned, all inputs are important but the greatest interest has always centered in the relationship between production and labour , because it is the only input, which belongs to live human beings.

TOTAL PRODUCTIVITY MODEL

Total Productivity Model developed by David J. Sumanth in 1979 considered 5 items as inputs.

These are Human, Material, Capital, Energy and other expenses. This model can be applied in any manufacturing or service

organization. Total Productivity= Total Tangible Output÷ Total Tangible Input.

Total tangible output= Value of finished units produced + partial units produced + Dividends from securities + Interests from bonds +Other incomes.

Total tangible inputs= Value of human inputs+ capital inputs+ materials purchased+ energy inputs + other expenses (taxes, transport, office expenses etc.)

Sumanth’s provided a structure for finding productivity at product level and summing product level productivities to total firm level productivity. The model also has the structure for finding partial productivities at the product level and aggregating them to product level productivities.

Total Productivity= Total Tangible Output÷ Total Tangible Input

= O1+O2+O3+O4+O5 / H+M+FC+WC+E+X

Where ,O1 is value of finished units of output.O2 value of partially completed units of output ,O3 dividend income, O4 interest income ,O5 other income.

H human input, M material input ,FC fixed capital input , WC working capital input, E energy input , and x other expense.

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