Theory Of Production

 Construction Productivity:
 Meaning and Definition Of Productivity and Production Rate:
- Productivity is simply the relationship between the outputs generated from
a certain system and the inputs provided to create those outputs.
- Inputs in the general form of labor (human resources), capital (physical and
financial capital assets), energy, materials, and data that brought into a system.
- As shown in Figure (1), these resources are transformed into outputs (goods
and services)

Fig. (1): General Productivity Model.

 Productivity , therefore, is defined as:
“Productivity is the relationship of the amount of output produced, that are useable,
salable, and of acceptable quality, by a given system during period of time, and
the quantity of resources consumed to create or produce those outputs over the
same period of time.”

 Production Rate:
It is usually thought that the greater the productions rate the greater the
productivity. This is not necessarily true.

 Production rate could be defined as:

“ Production rate or output rate is the quantity of work produced in a unit of
time.”
For example, if a bricklayer produced 4 m2 of brickwork in an hour, then it is
said that his production rate (or output rate) is 4 m2/hour.
 Example (1):
Suppose that a company manufacturing computers produced 1,000 computers by
employing 40 workers at 7 hours/day for one month. Assume this month has
a 25 working days. What are the production rate and productivity of labor?
Solution:
Production rate = 1,000 computer / month.
Labor productivity = 1,000 / (40 workers * 25 days * 7 hours /day)
= 1 computer / 7 man-hr.
Example (2):
Suppose the a company in example one increase its production to 1,500 computers
by employing 30 additional workers at 7 hours/day for one month. This month has
a 25 working days. What are the production rate and productivity of labor now?
Solution:
Production rate = 1,500 computer / month.
Labor productivity = 1,5000 / [(40 + 30) workers * 25 days * 7 hours /day)]
= 1 computer / 8.2 man-hr.

These two examples show that an increased production rate does not necessarily
mean increased productivity.
 Construction Productivity and Standard of Living:
- The greater the amount of goods and services an individual is able to buy, the
higher his or her standard of living will be.
- By increasing productivity people will earn more.
- By increasing national productivity in agriculture, industry, health and security
services and education, the goods and services produced will be more available
at a relatively cost.

Fig. ( 2): Effect of improving productivity Fig. (3): Consequence of declining productivity
 Productivity Measures in Construction
 Types of Productivity Measures
There are three types of productivity measures:
(1) Partial Productivity:
“The ratio of the total output produced to the input of one element of production.”
Where, element of production is:
“ One type of resources used to accomplish total output.”
Therefore,
Labor Productivity = total output / labor input
= total output / labor cost

Material Productivity = total output / material input

= total output / material cost

Equipment Productivity = total output / equipment input

= total output / equipment cost
(2) Multi-Factor Productivity:
“The ratio of the total output produced to the input of more than elements of
production.”
Multi-Factor Productivity = total output / (labor input + material) inputs

(3) Total Productivity:

“The ratio of the total output produced to the total inputs used.”
Total Productivity = total output / (labor + material + equipment + etc.) inputs
= total output / (labor cost + material cost + equipment cost)
 Example (3):
In an operation of placing ready mix concrete on a construction project, use the
following information to calculate the total productivity of this operation.
Transformation system:
• It is required to build a floor slab of 30m * 40m area and the thickness of slab 0.2m
at the sixth floor of residential building.
• Pouring ready mix concrete to the sixth floor by using pump.
• The working hours per day are 8 hours.
• Assuming the production rate of pouring ready mix concrete by pump is 30m3/hour.
• The cost of equipments per day including (oil, fuel, energy... etc).
Inputs:
1. Labors: The following labors required on one day for pouring the ready mix
concrete.
Solution:
Labor productivity:
(From Table1):
Total man power = 10 man/day
= 10 * 8 = 80 man-hour.
Total cost of labors = $145
Labor productivity = 240 m3/ 80 man-hour
= 1m3 / 0.333 man-hour.
Labor productivity = 240m3/ $ 145 = 1 m3/ $ 1.66
2. Material productivity:
(From Table 2):
Material productivity = 240 m3 / $19,760
= 1 m 3 / $ 82.33
3. Equipment productivity:
(From Table 3):
Equipment productivity = 240 m3 / (8 pump-hour + 8 vibrator-hour)
= 240 m3 / $ (1235 + 30)
= 240m3 / $1265
= 1m3 / $ 5.27

Total Productivity

= 240 m3 / (145 + 19760 + 1235 + 30)

= 240 / 21170
= 1 m3 / $ 88.21