Determinants of productivity and estimation of production efficiency of workers in knitwear industry

In order to improve the cost efficiencies of knitwear industry and to provide a competitive edge, improvement in labor productivity was extremely important. To bring this improvement, it was first necessary to measure the current productivity level of the industry so that concentrated efforts can be made to bring improvement. The present study made an attempt to identify the current productivity levels in the knitwear industry of Ludhiana by using time study technique. A benchmark was created for individual firms to identify standard available minutes for each operation as the resource allocation in terms of machinery quality and raw material quality differ from product to product and from firm to firm. To calculate labour efficiency in each firm, data was captured for 20 consecutive days by taking the details of number of operators in a production line and the number of working hours. On the basis of this information, total minutes produced by each firm and the total minutes available for the firms was calculated. The data captured through line efficiency estimation technique revealed that the current labor productivity levels in knitwear industry of Ludhiana were estimated as 39.02 percent. The defect rate was also found to be considerably higher which led to a lot of rework negatively affecting the productivity levels of the industry. Defects per hundred units were highest when a new style was started and it tapered after 4- 5 days of working on an individual style.