DEVELOPMENT OF PRODUCTIVITY INDEX MODEL FOR NIGERIA INDUSTRIES

Abstract

This work involves the development of Productivity Index model for Small Scale Industries in Nigeria and the design and implementation of prototype software. The major focus in this work is firm level total factor productivity measurement using a value system to account for variations in quality and quantity of inputs and outputs. This was achieved through the use of mathematical equations to model input and output aggregate for a production outfit for the benefit of productivity measurement in Small Scale Industries. The software program is written in visual basic programming language and is validated using data from selected industries in Nigeria. The data were tested using developed software and a Microsoft excel sheet respectively. The results obtained when using the software showed that company A had a productivity value of 0.54 for June, 2014, while companies B and C had productivity values of 0.8 and 1.38 respectively. High productivity means productivity values greater than one, while low productivity means productivity values less than one. This shows that companies A and B had low productivity respectively for the month of June, 2014 while company C had a high productivity for the same period. The same computations were performed using a Microsoft excel sheet and the results obtained show that the productivity values for companies A,B, and C were 0.54,0.8, and 1.38 respectively. When compared with results from the developed software, it can be concluded that there is no difference. Therefore the developed software was validated and this demonstrates its fitness for use in productivity measurement for small scale industries in Nigeria.