What is productivity ? This is one of the familiar concepts in the field of business and production, directly affecting the efficiency of operations and maintenance of the enterprise. The article below provides information about what productivity is and solutions to help businesses increase productivity effectively, thereby promoting competitiveness and sustainable development. Discover now!

1. What is productivity?

Productivity in English is Productivity, this is the standard to measure the efficiency of resource use in the production process. That means, the business has produced more products or products of higher quality with a used resource.

For example: A and B are both assigned to pick 100 apples. A completes it in 1.5 hours, while B completes it in 1 hour. It can be seen that B is more productive than A, because B only needs less time to pick the same number of apples as A.

Productivity can be measured in different ways depending on the resource factors. In business, productivity can be expressed in two forms: labor productivity and production productivity. Specifically as follows:

• Labor productivity: Measured by dividing output by the amount of resources used.
• Productivity: Measured by taking total output minus the number of resources used.

2. The importance of increasing productivity in business

Increasing productivity is considered the top goal of every business, especially for socio-economic development. The aspects that can clearly see the importance of increasing productivity are often:

• Increasing productivity helps businesses reduce production costs and improve business efficiency. Then, businesses will be able to produce more products with the same number of workers, thereby increasing profits.
• Increasing productivity contributes to improving the competitiveness of enterprises. In today's developing era, the higher the productivity of enterprises, the more opportunities they will have to compete, easily gain market share and expand production scale.
• Increasing productivity helps improve workers’ income. When production increases, the demand for labor increases, and businesses will need to hire more workers to meet production needs. This creates more job opportunities and increases income for the workforce.
• Increasing productivity helps promote economic growth. Increased productivity helps businesses increase output and increase national GDP. This contributes to promoting economic growth and improving people's material and spiritual lives.
• Increasing productivity affects the competitiveness of enterprises. High productivity helps enterprises improve product quality, thereby competing in terms of price and quality compared to competitors.
• Increasing productivity helps businesses promote innovation capacity, giving businesses more resources for research and development, creating new products, and meeting market needs.

In general, increasing productivity is one of the important factors affecting the competitiveness of enterprises. High productivity will help enterprises reduce production costs, create quality products/services at good prices, ensure growth and promote profits.

3. What are the important factors affecting productivity?

Productivity can be affected by many different factors. Of which, material, human resources and natural resources are the 3 main factors affecting the production efficiency of enterprises. Specifically as follows:

• Material: Are the items and equipment used in the labor process. Therefore, if the business is fully equipped with tools, especially modern equipment, workers will complete the work quickly, bringing high productivity and efficiency.
• Human resources: Includes skills, experience, and knowledge accumulated during the working process. These factors have a significant impact on the productivity of the business.
• Natural resources: Are input factors in the production process, divided into 2 types: Renewable and non-renewable resources.

4. Effective productivity increasing solutions for businesses

In addition to recognizing the importance of productivity , businesses need to implement measures to improve productivity, thereby promoting competitive opportunities in the market. Below are solutions to increase productivity that businesses can refer to:

4.1 Optimizing production operations

Optimizing the production process and eliminating unnecessary steps is a prerequisite for businesses to improve productivity, save time and costs. To implement this solution, businesses need to conduct a detailed analysis of the steps in the production chain, identify inefficient steps and eliminate or restructure them.

4.2 Plan specific marketing activities

Marketing is an important factor that helps businesses maintain business efficiency and sustainable development. To effectively manage marketing activities, businesses need to make a marketing plan within a certain period of time.

4.3 Regular monitoring and improvement

Next, businesses need to review their workflow to assess their performance, thereby discovering weaknesses in their business operations to resolve them decisively. One way to help businesses eliminate these bottlenecks is to reduce the number of projects in their workflow.

4.4 Employee recognition and rewards

Recognizing dedication and excellence can boost employee morale. At the same time, rewarding or offering a raise to your team can boost their efforts and inspire others to do better.

4.5 Application of technological solutions

Ultimately, investing in and applying new technology to production is an effective solution to improve business productivity, especially in the current digital transformation era. New technology helps businesses create products with higher quality, but at lower or unchanged costs. At the same time, applying Robots and machine learning can help businesses reduce human resources in the production process and minimize errors.

In addition, businesses should apply resource planning solutions to easily evaluate process performance, thereby detecting and resolving problems easily. 1C:ERP is one of the leading solutions that is doing that well. Thanks to its mastery of technology and experience in developing solutions in many countries around the world, 1C:ERP solution is developed in the most comprehensive way, has the ability to deploy 2 times faster than other solutions and is ready to be applied to business models of enterprises.

Below are the superior features of the 1C:ERP solution in supporting businesses in increasing production productivity:

• Improve workflow: 1C:ERP helps businesses eliminate duplicate work or manual operations as well as optimize production processes.
• Real-time reporting system ready: Administrators can create management reports anywhere. The reporting system is also ready for consolidation and change of plans without any programming knowledge.
• Improve product/service quality: Businesses can easily check shipping policies and inventory levels, thereby promptly detecting problems arising in the process of providing goods to customers.
• Enhanced security with authorization: 1C:ERP integrates data encryption and strict authorization, making it easy for businesses to manage user information and modification history.
• Boosting investment value: 1C:ERP solution helps businesses optimize operating costs, easily control operational goals, and estimate the performance of all employees to achieve financial goals. At the same time, compatibility with most software and IT infrastructure, along with the ability to easily customize and expand the solution, businesses will be able to optimize investment value for their digital transformation journey.

The above are shares about what productivity is and methods to help businesses increase productivity effectively. Hopefully the above information will help businesses successfully apply it to the development process, thereby dominating the market and increasing profits. If businesses need further advice and answers about the 1C:ERP resource planning solution, please contact the hotline: 0247.108.8887, 1C Vietnam will respond promptly!