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Garment ManufacturingGarment Production

Benefits of Productivity Improvement

Productivity is the ratio of “OUTPUT” to “INPUT”.

As everyone knows the productivity improvement is a need for the garment industry. Productivity is an index which shows how effectively an organization is using its resources (inputs).

Benefits of Productivity Improvement
Benefits of Productivity Improvement

Benefits from Productivity Improvement

Higher productivity results in a higher volume of production with the same overhead cost and hence lower cost and this results in higher profit.

Productivity improvement gives benefits to each and every one.  So benefits are categorized with respect to organization, operator, customer and Nation.

a) Benefits to the organization

  1. Higher productivity increases production reduces cost and this results in more profit.
  2. Same profit can be re-invested in meeting future financial needs of the concern.
  3. Higher productivity results in an increase in the reputation of the organization.
  4. As the organization has a lower cost of manufacturing so it has more stability over the long period.

(b) Benefits to Operators

  1. The operator can get higher wages and bonus, which is resulting in a better standard of living of workers
  2. Better working environment and job satisfaction

(c) Benefits to the Customers

  1. Value for money.
  2. More satisfaction to consumers.

(d) Benefits to Nation

  1. The better cost helps to capture the international market and helps to increase GDP
  2. It increases income per capita which results in improvement of the standard of living.

Overall Benefits of Productivity Improvement

  1. Increases profitability
  2. Lowers operational costs
  3. Optimizes resources
  4. Improves customer service
  5. Helps the organization for growth
  6. Reduces waste and improves the working environment
  7. Improves competitiveness
  8. Reduces employee burnout
  9. Enhances wedges
  10. Improves morale
  11. Increases engagement

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