Page 128 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 6: Productivity

9. ……………… productivity is the year-by-year change in the output where a number of Notes
factors are taken into consideration.
10. ……………… productivity accommodates more than one input factor and more than one
output factor when calculating overall productivity.

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Caselet National Productivity Council (NPC)

nderstanding economic competitiveness requires continual assessment of
economic data and trends from around the world. The competitive position of an
Uorganization depends on benchmarking efforts that identify key weaknesses and
strengths in the company. This was recognized by the Government of India in 1958 when
it established the National Productivity Council (NPC), as a national level organization to
promote productivity culture in India. NPC implements productivity promotion plans
and programs.
Every company’s most important asset is the people who walk in its doors every morning.
Talented people, creating new ideas and innovative technologies, keep the companies
strong and growing stronger. Productivity consciousness has acquired worldwide
momentum. Higher productivity is necessary for the survival of any organization. It
stands for proper utilization of available resources to achieve the best results with minimum
cost. Improvement in productivity is the only answer to the problems in the industrial
sphere and it is the only path to national prosperity. In India, it assumes special significance
owing to the resource gap.

In order to overcome the hurdle of shortfall in resources, stepping up of productivity is a
must. This is the challenge of NPC which has its headquarters at New Delhi. It also has
twelve Regional Directorates, two Regional Offices and two Training Institutes. It provides
training, consultancy, research and information in the areas of productivity, industrial
engineering, pollution prevention and control, human resource development and various
other related fields. A maintenance-cum-training Center has been built at Gandhi Nagar
with the assistance of the Government of Gujarat. In all, NPC have 14 offices in India and
207 full time professional consultants.
The activities of the Council are chiefly guided by its basic mission objectives:
 To increase productivity in all spheres of industries and to pave the way for launching
productivity drive in all spheres of economic activities of the country;
 To stimulate and promote productivity consciousness by disseminating information
regarding productivity techniques and processes;

 To stimulate and facilitate establishment of regional/local and industry-wise
productivity organizations; and
 To undertake scientific research activities related to productivity.
As the premier institution for promotion of productivity in India, the professional services
are aimed at achieving greater competitiveness, improvement in working conditions and
the quality of work life. It is trying to make productivity a mass movement. The ability to
succeed in the marketplace remains a cornerstone of competitiveness.
The threats to economic competitiveness that existed two decades ago have been replaced
by new challenges—challenges relating to innovation, capacity and competitiveness.

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