To determine production efficiency and its profitability, a formula for calculating labor productivity is used. Based on the data obtained, the management of the enterprise can draw conclusions about the introduction of new machines or changes in production technology, reducing or increasing the workforce. Calculating this value is very simple.

Basic information

Labor productivity is the most important criterion for assessing the effectiveness of workers. The higher it is, the lower the cost of producing goods. It is he who determines the profitability of the enterprise.

By calculating labor productivity, you can find out how fruitful the work of workers is for a given period of time. Based on the data obtained, it is possible to plan the further work of the enterprise - calculate the expected volumes of production, revenue, draw up cost estimates and purchase materials for production in the required quantity, hire the required number of workers.

Labor productivity is characterized by two main indicators:

• Production , which indicates the volume of products produced by one worker over a certain period of time. Often calculated for one hour, day or week.
• Labor intensive - on the contrary, it already indicates the amount of time that the employee spent on the production of one unit of goods.

It is worth noting that increased productivity leads to reduced production costs. Thus, by increasing productivity, you can significantly save on wages and increase production profits.

Calculation of output and labor intensity

Output depends on the average number of employees and the time spent on production. The formula looks like this:

B=V/T or B=V/N, where

• V
• T - time spent on its production,
• N

Labor intensity shows how much effort one worker puts into creating a unit of goods. Calculated as follows:

• V – quantity of manufactured product;
• N – average number of employees.

Both formulas can be used to calculate the productivity of one employee.

Let's look at a specific example:

In 5 days, the confectionery shop produced 550 cakes. There are 4 confectioners working in the workshop.

The output is equal to:

• В=V/T=550/4=137.5 – the number of cakes made by one pastry chef per week;
• В=V/N=550/5=110 – the number of cakes made during one day.

Labor intensity is equal to:

R=N/V= 4/550=0.0073 – indicates the amount of effort the pastry chef puts into making one cake.

Performance calculation formulas

Let's consider the basic formulas for calculating labor productivity for each situation. All of them are quite simple, but the following nuances must be taken into account in the calculations:

• The volume of products produced is calculated in units of manufactured goods. For example, for shoes - pairs, for canned food - jars, etc.
• Only personnel involved in production are taken into account. Thus, accountants, cleaners, managers and other specialists not directly involved in production are not considered.

Balance calculation

The basic calculation formula is balance calculation. It helps to calculate the productivity of the enterprise as a whole. To calculate it, the main value is taken as the amount of work indicated in the financial statements for a certain period of time.

The formula looks like this:

PT=ORP/NPP, where:

• PT – labor productivity;
• ORP – volume of products produced;
• NWP– the average number of workers involved in the process.

For example: the company produces 195,506 machines per year, – 60 people. Thus, the productivity of the enterprise will be calculated as follows:

PT=195,506/60=3258.4, which means that the enterprise’s labor productivity for the year amounted to 3258.4 machines per worker.

Calculation of productivity by profit

Productivity can be calculated based on the profit of the enterprise. Thus, you can calculate how much profit an enterprise brings in a given period.

Labor productivity for a year or month for an enterprise is calculated using the formula:

PT=V/R, where

• PT – average annual or average monthly output;
• IN – revenue;
• R – average number of employees per year or month.

For example: in a year the entire enterprise earns 10,670,000 rubles. As already indicated, 60 people work. Thus:

PT = 10,670,000/60 = 177,833. 3 rubles. It turns out that in one year of work, each employee brings in an average of 177,833.3 rubles in profit.

Average daily calculation

You can calculate the average daily or average hourly output using the following formula:

PFC=V/T, where

• T – total working time spent on production in hours or days;
• IN – revenue.

For example, the company produced 10,657 machines in 30 days. Thus, the average daily output is:

PFC=10657/30=255. 2 machines per day.

Natural calculation formula

It can be used to calculate the average labor productivity per worker.

This formula looks like this:

PT = VP/KR, where

• VP – manufactured products;
• KR – number of workers.

Let's consider an example for this formula: 150 cars are manufactured in a workshop per week. Works - 8 people. The labor productivity of one worker will be:

PT=150/8=18.75 cars.

Factors influencing the value

The following factors influence the value of labor productivity of an enterprise:

• Natural and weather conditions . The productivity of agricultural enterprises directly depends on weather conditions. Thus, bad weather conditions - rain, low temperatures - can reduce human productivity.
• Political situation . The more stable it is, the more attention is paid to the development of production, and therefore the higher the productivity.
• General economic situation , both enterprises and states, the world as a whole. Loans, debts - all this can also reduce productivity.
• Making changes to the production structure . For example, previously one employee performed 2 or 3 operations, then a separate employee was hired to perform each operation.
• Application of various technologies . This includes not only the introduction of new technology and equipment, but also production methods and techniques.
• Change of management team . As you know, every manager tries to make his own additions to the production process. Not only the productivity indicator, but also the quality of the product largely depends on his knowledge and qualifications.
• Availability of additional incentives – bonuses, increased payment for processing.

In general, labor productivity of any enterprise is constantly growing. This is connected both with the acquisition of experience and with the building up of technical and technological potential.

Video: Formula for calculating labor productivity

Learn all the intricacies of calculating labor productivity from the video below. It provides the main factors influencing the calculation of labor productivity, related concepts and formulas, as well as examples of solving the most common problems that an enterprise owner may encounter.

Labor productivity is the ratio of the volume of work performed or manufactured products to the time spent on its production by an enterprise, workshop, department or individual. It is quite simple to calculate it, knowing the basic formulas and having data on the volume of production of the enterprise and the number of employees.

The main planned and accounting indicators of labor productivity at industrial enterprises are the volume of production in physical or value terms per employee of industrial production personnel (per man-day or man-hour worked) and the labor intensity of a unit of production or work. Labor intensity (Tr) represents the cost of living labor to produce a unit of output. The labor intensity indicator has a number of advantages over the output indicator. It establishes a direct relationship between production volume and labor costs and is determined by the formula: Tr = T / OP, where T is the time spent on the production of all products, standard hours or man-hours; OP - volume of products produced in physical terms.

Cognitive economics

Note that when determining the level of labor productivity through the production indicator, the numerator (volume of products produced) and the denominator of the formula (labor costs for production or the average number of employees) can be expressed in different units of measurement. In this regard, depending on the denominator of the formula used, average hourly, average daily, average monthly, average quarterly and average annual production are distinguished.

The average hourly output indicator characterizes the average volume of products produced by one worker per hour of actual time worked: When calculating hourly output, intra-shift downtime is not included in the hours worked by a person, so it most accurately characterizes the level of productivity of living labor.

Average daily output of one worker formula example

At enterprises, labor productivity is defined as the cost-effectiveness of only human labor and is calculated through indicators of output and labor intensity of products, between which there is an inverse relationship (Fig. 3). Rice. 3. Indicators of labor productivity Output (B) is the amount of products produced per unit of working time or per one average employee or worker for a certain period (hour, shift, month, quarter, year).

It is calculated as the ratio of the volume of produced products (OP) to the working time spent on the production of these products (T) or to the average number of employees or workers (H): V = OP / T or B = OP / H.

Formula for average annual output per worker

Important

Calculate the average, average day and average annual production per worker and one worker. Comment: From the point of view of economics or the opportunity to learn something, the task is not of interest.

Training on the ability to press buttons on a calculator. However, if you are even a little economist, then you must wonder what kind of enterprise this is that produces products worth 1713 UAH.

per month per person? (18,500,000 / 900 / 12 ≈ 1,713).

If you subtract materials, taxes, electricity, gas from this amount, how much will be left for wages? The teacher should have thought about this issue. It's sad... Solution. Let's present the solution in the form of a completed table.

Name of indicator Industrial and production personnel (900 people) Workers (780 people) Average annual output, thousand UAH (Commodity Products / Number) 18,500 thousand UAH.

Average annual output per worker

Attention

This way you can determine the influence of each factor on the variable part of the salary. The permanent part of the FZP is affected by:

• number of personnel (H);
• number of days worked per year (K);
• average shift duration (t);
• average hourly wage (AHW).

FZP f = Ch * K * t * ChZP.

The influence of each factor on the final result can be determined in exactly the same way. First, changes in each of the four indicators are calculated, and then the resulting values ​​are multiplied with absolute and relative deviations.
The next stage of analysis is calculating the effectiveness of using FZP. For expanded reproduction, profit, and profitability, it is necessary that productivity growth outstrip the growth of wages.

Analysis of enterprise performance, page 10

• production volume (O);
• production structure (C);
• specific labor intensity of products (LC);
• salary per person-hour (OT).

FZP lane = O * S * UT * OT. Before analyzing each of the factors, it is necessary to carry out intermediate calculations.
Namely: define the FZP variable:

• according to plan: FZP pl = O * S * OT;
• according to plan, taking into account the given production volume: FZP conv. 1 = FZP pl * K;
• according to the plan, calculated with the actual production volume and structure: FZP conv. 2 = O * UT * OT;
• actual with specific labor intensity and a given level of remuneration: FZP cond. 3 = Of * UTF * OFF.

Then you need to multiply each of the obtained values ​​by the absolute and relative deviation.

Labor productivity, output and labor intensity

Productivity This indicator reflects the ratio of the volume of manufactured (sold) products to the number of employees. In this case, generalizing, partial and auxiliary coefficients are calculated. The first group includes, in particular, average annual production. Formula: B = Volume of production / Number of employees = Volume of production / Amount of time spent.
Changes in average annual output may be due to:

• adjusting the number of employees;
• reduced labor intensity;
• growth of non-production costs;
• labor organization - an increase in all-day downtime, absences with the permission of the management, due to illness, absenteeism;
• changes in product structure.

Numerical indicators are the time spent in physical terms, calculated for one man-day (man-hour).

Methods for calculating labor productivity

The proportion of hired and retired employees is calculated, including for negative reasons. At the next stage, the use of working time is analyzed using the following algorithm: 1.
Nominal duty = 365 days – Number of weekends and holidays. 2. Attendance mode = Nominal mode - Number of days of absence from work (vacation, illness, absenteeism, management decision, etc.). 3.

Useful working time fund = Attendance mode * Duration of the working day - Number of downtime, breaks, reduced hours. Loss of working time The working time fund (WF) is the product of the number of employees (H), the average number of days worked per year by one person (D) and the length of the day (T).

Labor productivity analysis

An increase in labor productivity is ensured not by the stroke of a pen, but by organizational and technical measures. And only on the basis of this data can we carry out staff reductions and determine the results that we can get.

Here everything is turned upside down. But we need an “A” from the teacher... Solution: Let’s determine the planned number. To do this (for some reason), let’s take the fact of the third quarter (see.

To find out how effectively personnel are used in work, you will need to analyze labor productivity. The category under consideration is economic, expresses the fruitfulness and efficiency of the work of the organization’s employees regarding the production of goods.

What it is?

The labor intensity in the calculation for one product is represented by the total amount of time spent on its production. Based on this, labor efficiency is defined as the amount of product produced by a company employee per calculated unit of time.

Also, the definition of this concept is the time spent by a person on the production of one product. The production characteristics are compiled after analyzing the concept under consideration.

Sample of filling out production characteristics

Indicators are calculated for individual employees and for the entire organization. Production and production of products at individual employee locations and areas where products are manufactured must be measured in kind.

The volume of products manufactured over a certain period of time is taken into account. An example is the number of printed publications that were sorted by one person in an hour, the number of certificates issued per day by an employee, etc.

Dimensions relative to output at individual worker locations are often subject to standardization. A separate planned task or production norm is developed for the employee.

Methods for measuring labor efficiency

The productivity of employees involved in servicing various communications media can be characterized through production. This is because they are involved in adjustments and troubleshooting.

The work of such employees often involves performing duties at the workplace. Determine the required labor intensity, namely the amount of time spent on eliminating damage.

If we are talking about an enterprise that provides communication services, then the labor productivity of all employees is characterized through average output indicators. In general, it will not be possible to calculate production in kind for such a company. This is due to the provision of various services and works, and therefore the measurement is made in money.

Labor efficiency analysis

The volume of products sold by an enterprise providing communication services is reflected in the profit received. Therefore, when calculating the productivity of the entire company, sales revenue is used.

Labor efficiency is influenced by:

What is it measured in and what does it show?

Productivity is defined as a measure of the efficiency and fruitfulness of work activity. The category under consideration is expressed in two indicators. It is determined by the labor intensity of one product and the output of one person.

Production refers to the amount of product produced by a person over a specific period of time. For example, if a mechanic processes 50 parts in 5 hours of work, then the efficiency is calculated by dividing 50/5 and equals 10 parts per hour.

Types of labor intensity

Labor intensity is the time period spent on the production of one product. If an employee processes 10 parts in one hour, then the labor intensity is determined by dividing 60/10 and it turns out that one part takes 6 minutes of working time.

Labor productivity is determined through these concepts. It is understood as the number of products created in a single period of time, or the time spent on creating one product.

The company is staffed not only by blue-collar workers who directly create products; there are also employees, technicians, engineers, and support workers.

Labor Productivity Measurement

The listed persons do not independently produce the product, but create the conditions for its production and productive operation of the enterprise. When determining the productive level in the company as a whole, the labor of the listed employees is subject to accounting.

The concept of productivity is used as a generalizing characteristic of the company's production level. In practice, the expression of output in monetary terms is widely used. Using this indicator, it is possible to calculate the efficiency of the country as a whole, in the industry, and in an individual company.

The organization employs 200 people, with a total production volume of 400,000 rubles. Output for one person is calculated by dividing 400,000/200.

Output must be measured in physical form, which are pieces, meters, liters and other quantities. Indicators related to natural ones are applicable in organizations producing products of a homogeneous type. An example is stone mining, brick production, etc.

Improvement of production and its growth are mainly associated with increased productivity. A number of factors influence increased productivity levels.

First of all, the development of scientific and technological progress is reflected. Progression in the technical field affects the reduction of labor costs for the production of one product. Refers to a situation where old equipment is replaced with new equipment, improving the production sector.

The physical and emotional burden of work also affects productivity, so when new automated technologies are introduced into the work process, it is possible to significantly increase the level of production.

Formula

On average, production per month or per year in a company is calculated using the formula:

Calculation of average annual or average monthly output

To make the calculation, you first need to determine the indicators used in the formula. An indicator of product production over a period of time or labor intensity can be used. Production relative to one product over a time period is calculated as follows:

Calculation of average output of one product

Indicators regarding labor intensity are subject to calculation:

Calculation of labor costs per unit of production

The method used to calculate performance is then defined:

• cost;
• natural;
• labor.

The natural method is applicable to determining the amount of output and products produced by the organization. Measurements are made in quantities, meters, cubes and other quantities.

The company employs 100 workers. 100,000 products are produced in one month. The output per employee is equal to one thousand products (at the rate of 100,000/100).

The labor method is associated with measurement in standard hours. This type of method is not used in small and medium-sized businesses, as it is not entirely convenient.

The working process

The production process is associated with the organization of the employees' working day. For optimization, management constantly takes measures aimed at improving the working conditions of subordinates.

The begining of the work day

The mornings of employees of any company begin with the fact that they wake up. Then there is a meal, a shower, a choice of a suit to wear and a direction to the workplace.

The human brain is designed in such a way that in the sequence of performing the listed actions, it prepares the person for work.

This suggests that it is necessary to establish a schedule for completing work duties, which ensures success in production.

Often the working day starts at 09:00 and ends at 18:00, however, this schedule is not mandatory, and each employer has the right to apply his own.

In addition to setting the time for work, you need to remember to communicate with customers, thereby proving the professionalism and organization of workers. Clients are given special attention and their wishes are taken into account.

Eliminating extraneous sounds

Often, while performing work functions, a person listens to music. However, it has been proven that such sounds can distract the employee’s attention and, as a result, reduce efficiency.

For this reason, the employer is taking measures to eliminate unnecessary sounds during the labor process. The person himself may claim that music is not distracting, but in reality this is not the case.

Organization of work space

When a person performs labor functions at home, it is enough to sit down at the computer and start working. If an employee has a permanent place in the company where he works, then to improve productivity this place should be properly organized and optimized if possible.

Blocking sites that distract you from work

Upon arrival to work, the employee must block all sites and places that can distract from the performance of functions. Access to sites that are not used for work can be blocked or not opened during the work process.

Average hourly and average annual output

The average annual or monthly output for an organization is calculated using the formula:

Average annual or average monthly output

When calculating average output per hour or per day, the formula is used:

Average daily or average hourly efficiency

An increase in productivity provides the opportunity to perform additional volumes of work or create additional quantities of products with the same number of workers. The number of employees may also be reduced.

Currently, the main source of economic development is increased productivity.

This is due to the fact that the scale of production has increased and the need for services and goods has increased.

States apply an economic law related to productivity. The law speaks of a strict movement forward; it is said that labor efficiency increases due to the gradual movement of society forward.

The growth is associated with the modernization of equipment and an increase in the organization’s technical equipment. If technology is involved in production, then human costs are correspondingly reduced. Due to this phenomenon, products become cheaper as production costs fall.

Productivity growth in an organization is associated with:

• productivity gain measured as a percentage;
• savings made by increasing the category in question;
• an increase in the number of products released due to increased productivity.

In organizations, efficiency is in the process of constant growth, which is associated with gaining more experience and increasing technical and technological potential.

When a company plans for future performance, it plans to increase productivity. Indicators of economic significance are calculated by which this growth can be characterized.

The value of output per 1 employee is one of the key production indicators used both for production planning and for assessing labor results and its effectiveness. At the same time, output per worker can be studied and established in various ways and imply different periods - shift, month, hour or other time periods. Knowing the formula for output per 1 employee, you can calculate it quite easily - however, different types of activities may require different calculations.

Output per 1 employee - what is it?

At many enterprises, the most convenient mechanism for distributing tasks among employees is to assign a production rate. The production standard is a set of works that an employee must perform under his existing working conditions. At the same time, the mechanisms for assigning production standards can be applied to almost any category of employees, but this solution will be most effective and simple if it is applied to workers engaged in the production of similar goods.

Output per worker, in turn, is an indicator that is used in many calculations - both to determine the productivity of the employee himself, and to determine the potential capabilities of the organization or its structural unit to produce the required volumes of goods. Also, an analysis of output per worker per shift can be used for the purpose of subsequent modernization of production - both through technical innovations and by making changes to the process of organizing the workplace.

It is necessary to distinguish production indicators per employee from production indicators per main worker or per employee. Thus, output per worker is an indicator applied to all personnel of the enterprise - both those involved in production directly or indirectly, and not. In this situation, service personnel are also taken into account. By output per main worker we mean the total output per employee employed directly in the final production process. Output per worker requires the participation of production personnel in the calculations, including those indirectly related to production.

Since the concept of output per employee is not regulated by law, there may be different interpretations of it. For example, the indicator of output per 1 employee can be applied both to the entire company as a whole, and to individual structural divisions or specific employees to calculate their personal efficiency and labor productivity.

How to set output per 1 employee

It should be noted that output per 1 employee can be both an indicator used to plan future economic indicators and standardize labor at the enterprise, and an indicator determined after the fact based on the results of a certain period. Regardless of the specific situation, determining output per worker involves two main steps:

In this way, a specific indicator of output per employee can be obtained by dividing the accounting period by the standard time. However, this is only a general principle, because in practice, employees rarely engage exclusively in the same type of actions. At the same time, it is possible to set production standards per employee even in professions not related to production.

For some types of activities, legislation establishes approximate production standards. However, they are only recommended for use, and not mandatory - the only exceptions may be certain government agencies and companies, where the relevant requirements can be enshrined in specific regulations and documents.

Output per 1 employee - formula for more complex situations

The general formula for output per 1 employee, described earlier, will look like this:

• B = FV/NV

В – production, ФВ – total time fund, НВ – time norm for one unit of production.

If direct production requires certain preparation, then the employer should take into account the preparatory stage when developing production standards for 1 employee. The formula in this case looks like this:

• B = (VS – VP)/NV

WS – shift time, VP – preparation time, NV – standard time.

In cases where an employee is engaged in solving various problems during his work, the employer should take into account an additional coefficient in the production rate. For example, you should define the minimum unit of account - the simplest work transaction. When determining production standards, one should take into account the amount of time spent on the production of a particular product in relation to the minimum unit of account.

In general, the indicator of output per 1 worker is extremely important for HR specialists, because it is on its basis that employees can be attracted to or, on the contrary, encouraged. In addition, this indicator is also used in deeper economic studies within the enterprise.

For example, when looking for solutions to optimize labor, because an increase in output per employee will mean a general increase in work activities.

The ultimate goal of any entrepreneurial endeavor is to make a profit. A businessman or enterprise uses a complex of necessary resources: goods, raw materials, energy sources, property and technical means, new technologies, labor and services of various organizations.

To obtain a positive result, the economic effect from the use of all elements of these resources must be accurately determined.

What is it, why count?

Every employer dreams of the staff he hires to do as much work as possible in a shorter period of time. For average calculation of the work efficiency of the workforce labor productivity indicators are used.

The most objective assessment will be the productivity of labor of workers performing homogeneous work under similar conditions. In this case, in the analysis you can see how many operations, parts, components are performed by employees, that is, calculate in physical terms: how much one person produces in an hour, shift, month, or how much time he needs to produce a unit of product.

When producing and performing various works, their volume is calculated in monetary terms, which to a certain extent reduces the accuracy of the calculation.

What is the practical meaning of these indicators?

• Comparison with the planned, baseline or actual indicator of previous periods helps to find out whether the labor efficiency of the team as a whole and individual structures of the enterprise has increased or decreased.
• Allows you to assess the potential load on workers and the ability of the enterprise to fulfill a certain volume of orders within a specified period.
• Helps to determine the extent of the usefulness of introducing additional technical means and using new technologies. To do this, the average employee output is compared before and after the implementation of technical innovations.
• Based on the analysis of the data obtained, a personnel incentive system is being developed. The amount of bonuses and incentives will be calculated correctly if it ensures a corresponding increase in revenue and profit of the enterprise.
• The analysis also reveals specific factors that positively and negatively affect labor intensity. For example, interruptions in the supply of spare parts, raw materials and materials, frequent breakdowns of equipment, insufficient organization of labor in the workshop or enterprise. If necessary, the timing of working hours is added to this analysis and appropriate adjustments are made to the standardization of labor of individual departments and the work of middle and senior managers.

You can see detailed information about calculating this indicator in the following video:

Formulas and examples of calculations

Generalized formula for labor productivity:

P= O/H, Where

• P is the average labor productivity of one employee;
• О — completed amount of work;
• N — number of employees.

This indicator, which characterizes how much work one person performs during a selected period (hour, shift, week, month), is also called production.

Example 1. In January 2016, the fashion studio completed 120 orders for sewing outerwear (jackets). The work was carried out by 4 seamstresses. The labor productivity of one seamstress was 120/4 = 30 jackets per month.

Reverse indicator - labor intensity— determines how much labor (man-hours, man-days) is needed to produce a unit of product.

Example 2. In December 2015, the workshop of the furniture factory produced 2,500 chairs. According to the time sheet, the staff worked 8,000 man-hours. It took 8000/2500 = 3.2 man-hours to make one chair.

To determine labor productivity by workshop, structural unit of a plant, factory for a period (month, quarter, year), the formula is used PT=оС/срР, Where

• PT - average labor productivity of one employee for the period;
• ОС is the total total cost of finished products for the period;
• sr - shop workers.

Example 3. In November 2015, the metal products shop produced finished products totaling 38 million rubles. The average number of employees was 400 people. 63,600 man-hours worked. In December 2015, products worth 42 million rubles were manufactured, and the average headcount was 402 people. 73,560 man-hours worked.

Output per person:

• In November it amounted to 38,000 thousand rubles/400 = 95 thousand rubles.
• In December 42,000 thousand rubles/402 = 104.5 thousand rubles.

The labor productivity growth rate for the workshop was 104.5 / 95 x 100% = 110%.

Labor intensity for the production of finished products worth 1 million:

• In November: 63,600 man-hours / 38 million rubles = 1,673.7 man-hours,
• In December: 73,560 man-hours / 42 million rubles = 1,751.4 man-hours.

Qualitative analysis of labor indicators makes it possible to optimize the total number of workers, their placement, identify existing shortcomings and reserves in the organization of work and the need for technical improvement of work processes.