Labour and industrial productivity in improving economical development

Abstract

The growth of economy of country or efficiency of production system depends generally on its level of science, technology and strategic management. For the growth of a country production force that includes production facilities and work force must be developed. Production facilities play a great role in the growth of an economy and society development. To evaluate the right direction of economic development it is necessary to apply complex economic index like labour productivity. Science has created the theory of productivity for labour and facilities. This theory can be used for strategic management to analyse a country or production system regular progress and development of production facilities. The increase of labour productivity depends on increase productivity of facilities and decrease in quantity of work force. The labour productivity of a system can be expressed as the ratio of quantity of products to quantity of labour expenditure in producing products on yearly basis. A labour productivity is not a stable magnitude, but varies with time. It grows in the beginning of economical work unit but will reach its limit. Hence, any economical unit provides growth of labour productivity and in future must be replaced by more perfect economical units. The main component of the labour productivity is productivity of industrial machines that used in engineering and technology. Some existing analytical approaches that utilize productivity rate data of industrial machines do not reflect reliable parameters. The productivity of some machines cannot be readily determined. This paper presents a new analytical approach for calculating a productivity rate of some complex design production lines and optimization of its structure by criterion of a maximal productivity rate. The novelty of scientific results is the new mathematical dependency of a productivity rate and optimization of a structure for the complex design industrial machines. The relevant formulas on labour and machine productivity are derived and these formulas can be used to study ways to increase labour productivity.