Productivity Calculator

This productivity calculator will estimate your staff’s productivity based on the work hours (or the number of laborers, i.e., machines, it depends on what you need). It’s as simple as this! Type in the hours worked for productivity per hour or input the number of employees to realize revenue per employee. You may also type in both to get the results from both metrics.

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Productivity formula

Productivity is the efficiency of a company in making products or services. It studies the utilization and non-utilization of some resources(input and output), i.e., human resources, machines, and software.

All businesses strive to produce more but spend less resources in the process. Therefore, enhancing workforce productivity can improve overall productivity. This helps business managers find ways to maximize output and minimize resource costs for the business.

Productivity formula :

Productivity is Input / Output

Productivity = input/output Input = resources into (sound, capital, working hours, etc.). Output is products generated, deals closed, goods produced, and a number of service encounters.   Competition, Inflation, and recession are a few factors that can influence productivity.

For the discussion, labor is central to any business initiative.

Labor inspection is a crucial initial step for managers who want to better their work processes.

 How do you calculate labor productivity?

For the average labor efficiency over time, you have to do a bit of arithmetic work and figure out total labor as well as total workforce output. You can quantify it in terms of units produced or sales generated. Our calculator does all the work for you, or you can do it yourself by applying the following formulas:

Labor productivity = Total units produced / Total hours worked;

Labor productivity = Total net sales / Total hours worked.

A company has been working so far to get 12 employees. Eight are part-time, and four are full-time. The company made sales of 25,500 dollars in January, 36,000 dollars in February, and then 29,000 dollars in March.

Steps to calculate the productivity of your employees for the first 3 months of this year:

1. Total sales –> 25,500 + 36,000 + 29,000 = 90,500

2. Find the sum of all hours worked. With 3 months, 4 weeks a month here, Each week obviously has 8 hours for one set of 20 weeks and another set of another 40:

   -Total Hours worked = “3*4*”(8*20 + 4*40) = 3 * 4 * (160+160) = 3 * 4 * 320 = 3,840 hrs.

3. Work out productively by splitting up the total hours worked ~

     Productivity = 90,500 / (3,840) = 23.57.

In the first three months of the year, productivity was earning the company $23.57 for every hour worked.

Labor productivity is a good measure of the state of the labor market. It reflects whether competition exists or not, tells us expected GDP growth, and helps us gain an idea about each economy’s living standards.

Productivity – practical examples

Let’s look at some examples to measure work efficiency.

Here are a few examples of how to evaluate work efficiency; here we go.

Example 1: Looking local — We begin with a local brewery. The owner has seven people who are bottling the beer. They both work 40 hours a week. Or bottle 19k+ bottles by the end of the week. This calculates productivity per hour:

Productivity = Total Bottles / Total Hours Worked

So,

Productivity = 19,600 / (7 x 40) = 19,600 / 280 = 70 bottles.

Brewery employees, therefore, produce a bottle of 70 bottles every working hour.

Example 2: For this one, consider Maria and Jane, two workers. Maria works full-time 40 hours a week and makes $25,000 in monthly sales. Jane sells for $16.000 per month with only 4-hour shifts.

To find their productivity:

Maria’s productivity = $25,000 / (40 x 4) = $25,000 / 160 = $156.25 per hour.

Jane’s productivity = $16,000 / (20 x 4) = $16,000 / 80 = $200 per hour.

Though Maria works more hours and makes higher sales herself, she produces at a rate of $156 per hour vs Jane’s $200. These can be checked with a calculator.

 Worker productivity vs. machine productivity

Workforce productivity and machine productivity may sound different, but they are derived from one common root. Depending on the need, you can use the same equation to estimate worker productivity and machine productivity.