Measures the output per labor hour in the production process.

What it Measures ?

How much each worker produces in one hour.

Relevant StakeHolders 

HR, Production Manager

Why it Matters ?

Improves labor efficiency.

In-depth Use Case / Real-world Example

Labor Productivity is calculated by dividing total output by the total number of labor hours. For example, if 100 units are produced in 200 labor hours, the labor productivity is 0.5 units per hour. Improving labor productivity means producing more with less time and cost. Companies can enhance this metric by training workers, improving work conditions, automating tasks, or enhancing processes. Tracking labor productivity helps manufacturers identify areas for workforce optimization and overall efficiency improvements.