Agri-Processing Automation and Efficiency Program FAQs

Agri-Processing Automation and Efficiency Program FAQs

What is productivity?

It is an average measure of the efficiency of production. It can be expressed as the ratio of output to inputs used in the production process, i.e. output per unit of input. For this grant program we measure productivity as the ratio of total revenue per total number of worker hours ($/worker hour).

How do I calculate productivity?

Productivity is measured in total numbers per worker hour ($/worker hour). Total revenue can be taken from whatever time period you choose to look at worker hours, i.e. total weekly/monthly/yearly revenue per total weekly/monthly/yearly worker hours. Worker hours are meant to include hours for the whole operation, including; front office, maintenance, cleaning etc.

A successful project would see an increase in productivity ($/worker hour) because:

  • Scenario A: Revenue has increased and the number of worker hours has decreased,
  • Scenario B: Revenue has increased and the number of worker hours has stayed the same, or
  • Scenario C: Revenue has stayed the same but the number of worker hours has decreased.

Example:

Before the Project

Total revenue per month

Total worker hours per month

Productivity = $100,000/2000 hours

.

$100,000

2000 hours

$50/worker hour

.

Scenario A

Total revenue per month

Total worker hours per month

Productivity = $150,000/1500 hours

.

$150,000

1500 hours

$100/worker hour

.

Scenario B

Total revenue per month

Total worker hours per month

Productivity = $150,000/2000 hours

.

$150,000

2000 hours

$75/worker hour

.

Scenario C

Total revenue per month

Total worker hours per month

Productivity = $100,000/1500hours

.

$100,000

1500 hours

$67/worker hour

.

It is understood that in the application that the productivity value is a forecast based on theoretical productivity expectations. In the final report declaration we would expect that the value is from actual values obtained post implementation.

What is increased capacity?

Capacity is the maximum amount your manufacturing operation can produce. Capacity is increased either to meet an actual (immediate) increase in customer demand or an anticipated (future) increase in customer demand.

Immediate capacity increases are usually achieved by:

  • a) Using Existing Equipment For More Time (Adding Shifts or Overtime)
  • b) Using Someone Else’s Equipment (Outsourcing)

Future capacity increases are usually achieved by:

  • a) Using Existing Equipment More Effectively (Improving)
  • b) Purchasing New Equipment (Spending)

How do I calculate the projected increase in capacity (KG)?

Measure the difference in total production (kg) prior to project implementation and the projected total production (kg) after project implementation. You can choose to measure total plant production or be processing line specific.

Please calculate this number based upon amount of production per year.

It is understood that in the application that this number is a forecast based on theoretical production expectations. In the final report declaration we would expect that the value is from actual numbers obtained post implementation.

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