A-Z Popular Blog Productivity Search »
Productivity
 Advertisements
Related Guides

How to Calculate Productivity Rate

 , updated on
Productivity rate is the amount of output produced in an hour of work.

Formula

Productivity rate is calculated as the total output of workers divided by hours worked.
productivity = output / hours worked
Output is typically a dollar amount. This is usually net output that represents the value added by the hours worked. Alternatively, output can be measured in production units or any other measure of output that is meaningful to your business.

Example #1

Workers on a production line produce 110,000 chocolate bars with a wholesale value of $170,000 on a shift. The costs of non-labor inputs such as ingredients, machines and electricity are $90,000. Therefore, the workers added $80,000 of value ($170,000 - $90,000) on the shift. The shift represents 64 hours of work.
productivity = $80,000 / 64 = $1,250 / hour
Alternatively, productivity could be calculated in units. This is useful when value added dollar amounts are difficult to estimate.
productivity = 110,000 / 64 = 1718.8 units / hour

Example #2

A freelance designer completes 4 projects for clients with a total value of $9,900 in a month. He has $2000 in expenses resulting in a net profit of $7,900. He works a total of 210 hours in the month including all administrative work and customer relationship management.
productivity = $7900 / 210 = $37.62 / hour
Overview: Productivity Rate
Type
Definition (1)
The net output produced in an hour of work.
Definition (2)
The value added in an hour of work.
Related Concepts

Productivity

This is the complete list of articles we have written about productivity.
Attention Span
Automation
Bikeshedding
Busy Work
Discipline
Division Of Labor
Efficiency
Employee Productivity
Flow Theory
Labor Intensive
Low Productivity
Practical
Proactive
Process
Productivity Analysis
Productivity Goals
Productivity Mgmt
Routine Work
Self-Discipline
Social Loafing
Teamwork
Telecommuting
Time Boxing
Toil
Tools
Work
Work Attitude
Work Decisions
Work Ethic
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Productivity

The basics of productivity.

Flow

An overview of flow.

Efficiency vs Productivity

The difference between efficiency and productivity.

Knowledge Work

A definition of knowledge work with examples.

Bottleneck

An overview of bottleneck with examples.

Productivity Formula

How to calculate productivity with 3 examples.

Productivity Improvement

The definition of productivity improvement with examples.

Toil

The definition of toil with examples.

Work Ethic

The definition of work ethic with examples.

Time Management

A comprehensive guide to time management techniques.

Self-Improvement

Common examples of self-improvement.

Time Boxing

The definition of time boxing with examples.

Time

An overview of the physics of time.

Discipline

The definition of discipline with examples.

Discipline vs Motivation

A comparison of discipline and motivation.

Self-Discipline

The definition of self-discipline with examples.

Attention Span

The definition of attention span with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map