Manufacturing Productivity

 

Source: U.S. Bureau of the Census, 1992 and 1997 Economic Census.

http://www.census.gov/epcd/www/econ97.html

 

The Economic Census is the major economic statistical program of the United States.  It measures almost all economic activity in the U.S. from the nation to the local level. These data include only establishments with paid employees.

 

Updated every 5 years.

 

Definition:

Manufacturing Productivity-- Measures the operational efficiency of a manufacturing organization.  Manufacturing Productivity is measured by dividing the “Value Added” in the manufacturing process by the “Production Worker Hours.”

 

“Value Added” is the measure of manufacturing activity that is derived by subtracting the cost of materials, supplies, containers, fuel, purchased electricity, and contract work from the value of shipments (products manufactured plus receipts for services rendered). The result of this calculation is adjusted by the addition of value added by merchandising operations

(i.e., the difference between the sales value and the cost of merchandise sold without further manufacture, processing, or assembly) plus the net change in finished goods and work-in-process between the beginning- and end-of-year

inventories.

 

“Value added” avoids the duplication in the figure for value of shipments that results from the use of products of some establishments as materials by others. Value added is considered to be the best value measure available for comparing the relative economic importance of manufacturing among industries and geographic areas.

 

“Production Worker Hours” covers all hours worked or paid for at the manufacturing plant, including actual overtime hours (not straight-time equivalent hours). It excludes hours paid for vacations, holidays, or sick leave when the employee was not at the establishment. Hours of working proprietors or partners are excluded.

 

More information:

·        about the Economic Census