# How To Determine The Rate Of Production

## Video: How To Determine The Rate Of Production

The concept of production is most often used as one of the indicators of labor productivity. Labor productivity characterizes the degree of labor efficiency, its ability to produce a certain amount of goods and services per unit of time, as well as the amount of time spent on manufacturing a unit of output. Among the performance indicators, the most important are the rate and the level of production. How to determine the level of production?

## Instructions

### Step 1

To begin with, determine the production rate using the formula: Нв = Tr * h / TnGde Tr - the duration of the period for which the production rate is set (in hours, minutes);

h - the number of workers taking part in the performance of the work;

Тн - the norm of time for a given job or one product (in man-hours).

### Step 2

The production rate, depending on the type of goods, works and services, can be expressed in pieces, units of length, area, volume, weight, etc.

### Step 3

Labor rate setting specialists distinguish several types of production:

- average hourly output - the ratio of the volume of production for a period to the number of hours worked by all workers during this period;

- average daily output - the ratio of the volume of production for a period to the number of man-days worked by all workers during this period;

- average monthly output - the ratio of the volume of production for the period to the average number of workers per month;

- average annual output - the ratio of the volume of production for the period to the average number of workers for the year.

### Step 4

Having determined the production rate, find the output level as the ratio of actually produced goods, works or services to the rate. Let's consider an example: suppose the production rate is 10 pcs. products per hour, the workers produced 9 pcs. The production rate is 90%. If the workers produced 11 units, respectively, the output rate is 110%.