This book seeks to reveal to the reader the extent to which theconcept of productivity has been subject to abuse andmisunderstanding by different interest groups, provides a solidplatform for defining and calculating productivity in all differentindustries and situations and finally shows the definition andevaluation processes in one of the most important and complexindustries, namely mining and minerals.The starting chapters concentrate on the importance of productivityand its improvements. The history of the concept, its relationship withprofitability and the production level are well illustrated in thesechapters. It is argued here that the only way to cause increases in thenational aggregates, especially in their "per capita" values and henceincrease the standard of living, is to cause or bring about productivityincreases.The next part is all about productivity measurement. When reviewingthe literature, it is amazing to note that despite all the talks about theconcept, particularly in the post war era, it still remains to be one ofthe most illusive and ambiguous words in economic analysis. Thesituation remains that the level of concern and interest far exceeds thatof analysis and therefore effectiveness. It is further argued that it is notdue to the complexity of the concept that its measurements have beenavoided. It is rather due to the lack of understanding and the ease ofuse of the concept as a qualitative measure rather than a quantitativevalue.This book shows to the reader how exactly to calculate productivity. Itfirst provides an argument for the fact that it is impossible andmeaningless to provide or try to devise a detailed quantitative modelthat fits all situations. It is therefore necessary that although the basicstarting model is common between all such situations, a definitive andconcise model is devised for every case under consideration. Suchformula would initially decide upon the reasons for measuringproductivity and then concentrate on the especial characteristics of theindustry or firm. These criteria which are of extreme importance forthe serious productivity analyst are covered in details in this part ofthe book.Parameters that determine the values of productivity are described inthe next part. Such variables could include: labor cost and all itsimplications; capital as one of the most important of determinants, itsavailability, rate of interest etc; the macro economics parametersinfluencing measurements; investments, costs, depreciation, taxation,the extent of governmental intervention and many other variables.Another subject that and productivity analysis must encompass is thenecessity of providing relevant, accurate and practicable quantifiabledefinition of the productivity for the situation under measurement andanalysis. Most available literature states that there are essentially twotypes of productivity measures, partial and total. They then recognizephysical measures of output per labor cost as, for example, laborproductivity. In the same manner, they make attempts to measurecapital productivity, energy productivity etc. It is argued in this bookthat, productivity is the most comprehensive engineering economicsterm that is composed of many measureable and non-measureablecomponents. Furthermore, these components are often interrelated andalways inseparable. Any attempt to separate these input componentswould only mislead the analyst into an area which can be moreambiguous and dubious than the starting point.The book therefore argues that there can only be one measure forproductivity that firstly measures productivity rather than profitabilityor efficiency and secondly that it takes into account all financial andnon-financial inputs that are required to produce some outputs.A real case study is then introduced in the final chapter of the book.The case under calculation is the mining and minerals industry of Iran.Being one of the most important sectors of the economy of thecountry, any improvement in its productivity would lead to significantenhancement in the standard of living.Total productivity has been adopted as the measure that trulymeasures the concept and provides guidelines for the management toobtain increases that are economically feasible. The mining andminerals industry has been described briefly and then the maincomponents of productivity starting model discussed. Outputs inphysical terms together with all inputs in financial term have beencalculated and hence the productivity values for different years havebeen subject to quantification.Reading of this book is recommended to all those academics andpractitioners who are interested in the real meaning, value andeffectiveness of one of the most important determinants of well beingof all industrial organizations. Students reading economics and allrelated disciplines at different levels, engineers involved in practice,academics interested in quantification of the concept of productivity inparticular and all those who somehow show an interest in the concept,in general, would find the reading of this book useful and interesting.
