Labour Productivity

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hiya

Me and a friend were having an argument with a lecturer today.

We were doing a question on the above subject,

"Calculate the labour productivity of each month"

Month___Units___Labour Hours___Our Answer__Hers

Jan______20________320_____________0.06_____16
Feb______25________370_____________0.07_____14.8
Mar______22________320_____________0.07_____14.6
and so on

As I'm sure you know Labour Productivity is the amount of units produced per direct working hour, and we believe we have calculated that and think she has calculated how many hours it takes to produce one unit.

She believes she is right! :(

Are we correct or is she, as neither of us wanted to budge on the argument!

Someone please help!!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity

    In my opinion your tutor is correct.

    Productivity is the ratio between a measured volume of input and a measured volume of output. In this case: units.

    With labour productivity you are trying to discern how many labour hours are required (input) to produce one unit of output.

    Taking your own definition: quote "Labour Productivity is the amount of units produced per direct working hour" is that what your answer tells you? Your answer tells you the amount of a unit produced per direct labour hour. Ask yourself: is this meaningful?

    For example, if you worked for a furniture manufacturer would it be meaningful to know that you produced in January 0.06 of a table per labour hour or in February 0.07 of a chair?

    Don't forget management information needs to be timely, relevant and above all meaningful.

    In the correct answer you can clearly see that in January 16 hours were required to produce one unit then in February productivity increased as you needed only 14.8 labour hours to produce one unit and so on for March.

    As you can see you are dealing with outputs of a whole unit, as this is what you intend to produce and because later you will want to allocate costs to the units you have produced.

    For example, If you paid £1.00 an hour then in March it cost you £16.00 in labour to produce one table. Try doing this with your answer?

    Good question. And don't tell your tutor they're correct it will only encourage them. :)

    I hope this helps

    numbernumb
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity


    I largely agree with you too numbernumb in my own answer written soon after the same question was posted all over the Forums. Your definitions are probably a little clearer than mine though!

    http://forums.aat.org.uk/forums/posts/list/16500.page

    Regards,

    Robert
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity

    ok, maybe she is right, but the way she has taught is incorrect.

    on her powerpoint slides, it said "labour productivity is the amount of units produced per hour."

    She then had a equation,

    Total Number of units
    ____    Amount of time = Labour Productivity

    She then had an example

    24 units
    12 hours = 2

    it then said DO NOT do like this

    12 hours
    24 units = 0.5


    so maybe she was incorrect in the way she taught us.

    am i just tryin to dig myself out of a hole? :D

    ps sorry about the multiple posts
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity

    Cheers Robert, I hadn't noticed all the other postings and your reply.

    I would agree with you hillyjoe that if your tutor told you "DO NOT do it like this" and then proceeded to do it like that (women) then clearly she has advised you incorrectly. Grab another spade and bring that to her attention.

    Also, be careful of digging too many deep holes in accountancy because you might end up in the public sector. :shock:

    numbernumb
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity
    hillyjoe wrote:
    sorry about the multiple posts
    No problem!
    numbernumb wrote:
    then proceeded to do it like that (women)...
    Nice one... :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity
    blobbyh wrote:
    hillyjoe wrote:
    sorry about the multiple posts
    No problem!
    numbernumb wrote:
    then proceeded to do it like that (women)...
    Nice one... :lol:

    Not nice one :evil:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity

    bluewednesday wrote:
    Not nice one :evil:

    Yeah, but it was funny!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Labour Productivity
    numbernumb wrote:
    because you might end up in the public sector. :shock:

    numbernumb

    erm.... too late, already there! :lol:

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