Total Input and Productivity

Productivity Ratio

Multifactor productivity divides output by total input.

highlighted = computed this step

Divide Output by Input

Multifactor productivity is output divided by total input.

MFP=output/total input\text{MFP} = \text{output} / \text{total input}
Multifactor productivityThe table divides output by total input.multifactor productivityoutputtotal inputMFPbase60024001/4

Multifactor Productivity

Multifactor productivity is 1/4 unit per dollar.

600/2400=1/4600 / 2400 = 1/4
Multifactor productivityThe chart compares output with input costs.multifactor productivityoutput 600; total input 2400; MFP 1/4caseoutputlabormaterialenergytotal inputMFPbase600120080040024001/4what-if720120080040024003/10baseoutput 600MFP 1/4what-ifoutput 720MFP 3/10labor 1200material 800energy 400total input 2400what-if MFP 3/10; gain 1/20