PRODUCTIVITY ANALYSIS OF MANUFACTURING FIRM

Abstract

mill in Uttar Pradesh is chosen and all the data needed is collected from this paper mill. Paper mill produces about 70,000 tones per annum of paper i.e. roughly around 200 tones per day of different qualities. Paper of many varieties for writing, printing, packing etc. are produced. There are four paper machines each producing around 45 tones of paper. Machine three is randomly chosen. And production, quality, human resources, material related data is collected. It is assumed that all the machines are producing paper of same quality and same quantity. Performance Objective Productivity (PO-P) model is used to find out productivity index of this paper manufacturing firm. POP model is developed by using system theory and Management By Objective (MBO) approach thereby finding out which areas have low productivity index so that in which areas improvements are needed can easily be found out. Annual reports of the last five years are collected from the finance department. And financial analysis is carried out to determine financial position of the company. Inter firm comparison is done within industry and strengths and weaknesses are highlighted. It is not possible to avail all the data of the company so some data is assumed and many factors are neglected to simplify the process of finding out productivity index. This is an exercise rather than actual productivity calculation for the firm.