International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
Development of a Correlation Model between Total
Productivity and Partial Productivity
Bhargab kalita#1, Semson Boruah#2, Ajoy Krishna Dutta#3
#1
P.G. Student, Production & Industrial Engineering, Dept of ME, Jorhat Engineering College
#2
BE, Jorhat Engineering College
#3
Assistant Professor, Dept. of ME, Jorhat Engineering College, Jorhat, Assam, India
Abstract —Over the last 150 years India has
emerged to be the world leader in tea industry in
every aspects of production, consumption and export.
But unfortunately, at present the productivity
performance of Indian tea industry is very
dissatisfactory compared to China, Kenya, Sri Lanka
etc. The aim of this research work presented in this
paper is to analyze the productivity of different tea
estates of upper Assam district in India and to
compare the results. The survey is expected to reveal
correlation model between partial productivity and
total productivity and the productivity status of tea
estates of upper Assam via questionnaire. The survey
covered four tea industry and survey findings are
analyzed using minitab-14 through Regression
analysis. A quality tool “pareto analysis” was used
to sort and arrange critical factors according to the
order of importance.
After Regression analysis it was seen that the total
productivity is greatly dependent on labour
productivity. So this study emphasis on development
of labour productivity mainly by reducing labour cost
and gives other recommendations to improve this
productivity.
Keywords — Labour productivity, partial
productivity,
total
productivity,
minitab-14,
Regression analysis and Pareto analysis
I. Introduction
Historical background and present status of an
industry are the most important factor to study about
production system of a tea industry. Tea contributes
to national economy to a great extent. East India
Company has started the cultivation of tea in India
(Assam) in the year 1834. Assam produces the first
commercial batch of tea ever produced outside China
in 1839. The first Indian to start planting of tea was
an
Assamese
nobleman Maniram Dewan.
Chinnamara tea estate is the first tea garden of Assam
established by great Maniram Dewan in 1850.
According to a report (North –East
Enquirer, 2002) in the year 2000, the total area of tea
production in Assam was 26739 hectare and total
production of tea was found to be 451236000 kg. [1].
According to the Directorate of tea, government
of Assam there are about 28,000 small tea gardens in
Assam producing about 70 million kgs per year.
According to another report Assam has over 800 tea
plantation which are medium to large size. There are
about 2 lakhs small scale co-operative and individual
ISSN: 2231-5381
tea firms in Assam. On an average Assam produces
over 480 million Kg of tea [1]. Assam produces
around 53% of the country‘s total production and
also employs more than 10% of the state‘s workforce
or around 12 lacks of people. The state wise status of
estimated tea production (qty.in m.kgs) for august,
2015 is presented in the Table 1.
Table 1: estimated tea production (qty.in m.kgs) for
august, 2015
STATE/DIST
2015
2014
INCRE/DECRE
ASSAM
81.96 91.47 -9.51
VALLY
CACHAR
6.56
8.10
-1.54
ASSAM
88.52 99.57 -11.05
DOOARS
24.66 26.98 -2.32
TERAI
17.50 17.98 -0.48
DARJEELIN
1.48
1.44
0.04
G
WEST
43.64 46.40 -2.76
BENGAL
OTHERS
3.42
3.87
-0.45
NORTH
135.5 149.8 -14.26
INDIA
8
4
TAMILNAD
12.08 10.50 1.58
U
KERALA
4.63
3.38
1.25
KARNATAK
0.42
0.28
0.14
A
SOUTH
17.13 14.16 2.97
INDIA
ALL INDIA
152.7 164.0 -11.29
1
0
Source: Tea Board, India [2]
II. Objective
1. Calculation of total Productivity and partial
Productivity by considering tea estates in upper
Assam and
compare the productivity for three
years .
2. To find out the mathematical relationship between
Partial and total Productivity .
3. Pareto analysis to find out the factors that warrant
the most attention.
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
III. Literature Review
IV. Problems Faced by the Assam Tea Industry
Table 2: Literature Review
There are some problems due to which productivity
of Assam tea industry decreases. The factors which
are responsible for it are summarized below :
A. Lower Price of Tea In the International
Market:
Global tea prices have fallen due to a glut came by
favourable weather in Kenya, china & India. Falling
price can bit sells, growth but high volumes can also
result in fixed costs that are quite high in the
plantation business.
B. High Cost of Production:
The cost of production of tea in India is the highest
amongst all tea producing countries this is making
our tea less competitive in the international markets.
Electricity and fuel price has been increased rapidly
which leads to increase the cost of production.
C. Decrease in Production:
Declining production and interior quality are the twin
problem now plaguing tea plantation in Assam. The
main reason for that are shortage of labours, old tea
bushes, failure Of Owners To Modernize Their
Plantation & The Cerotic Climate Condition Etc.
Name of
Author(s)
Hyber W., et
al
Year of
Publication
1956
Gupta R ., et
al
2006-10
Asopa ., et al
2007
Nagoor ., et al
2009
Baten M.A .,
et al
2010
Gupta R ., et
al
2010
Ramakrishnan
2010
Chang ., et al
2010
Bagyalakshni
R ., et al
2012
Ongog J.O .,
et al
2013
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Key Findings of the
study
improve labour
relations in building
trades is the progress
in assuring steady
employment.
attempts to propose a
simple productivity
measurement model
suitable for tea
industry
Indian Tea Industry
needs to face market
realities, redefine its
business strategies
and reposition its
products to gain
profit.
performance of
India‘s tea exports is
declining steadily.
continues efforts to
upgrade technology
and equipment are
required to increase
efficiency.
safety plays an big
role for increased
productivity in the tea
industry .
increasing popularity
of green tea as well as
orthodox tea effects
export.
high investment in
research and
development, labour,
land and capital and
use of fertilizer,
machinery increases
productivity .
Significant Influence
of indigenous
potassium
Solubilising Bacteria
on Tea Productivity
tea mechanical
harvesting is an
important method of
adopting innovation
for high productivity .
D. Other Factors:
a) Soil erosion in hilly area
b) Large area under old bushes
c) Slow rate of re -plantation.
V. Methodology
The primary data has been collected from the
respondents of selected tea estates of Upper Assam.
The survey instrument used is a questionnaire
regarding their labour input, capital input, materials
input, energy input, miscellaneous input and total
outputs in terms of monetary equivalent .Personal
interview is done with the factory managers after
observing the factory processes. Secondary data has
been collected from Websites, Library, Journals,
Magazines etc. for supportive and other information.
Data collected is used for productivity analysis and
analyzed using statistical software package minitab14 through Regression analysis. Statistical quality
tool Pareto analysis was used to sort and arrange the
critical factors according to the order of importance.
VI. Manufacturing Process of Black Tea
Once the fresh leafs are plucked immediately brought
in to the factory, the leaf undergoes a process which
transforms fresh leaf into black tea, or ‗made tea‘. On
average, 22 to 25 kgs of made tea is produced from
every 100kgs of fresh leaf. This process has been
honed and perfected for more than hundred years and
demands great deal of expertise and experience to
ensure that the quality of the tea should not
compromised in any stage of the manufacturing
process.
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
8.1 Total Productivity Measure (TPM)
8.2 Partial Productivity Measure (PPM)
Plucking
A. Total productivity measure
Withering
It is based on all inputs. This model can be applied to
any manufacturing organisation or service company:
CTC
Machining
Total productivity=
Fermentation or
Oxidation
B. Partial productivity measure
Depending upon the individual input the partial
productivity measures can be expressed as:
Drying
Partial Productivity =
Sorting and
Grading
C. Productivity Measuring Model
VII. PRODUCTIVITY
Productivity is the quantitative relationship between
output and resource to produce them. It can be
expressed as:Productivity =
R. Gupta and S.K. Dey [1] developed a productivity
model for tea industry. They taking account all the
Input parameter related to a tea industry for labour
productivity measurement of a particular tea estate.
(In monetary value)According to this model
following input parameters are considered as follows:
VIII. Productivity Measures
Total Productivity =
There are two kinds of productivity measure method.
They are-
Fig 1: Schematic Diagram of Black Tea Manufacturing Process
Table 3: Output, input, partial productivity (Tea Estate 1)
Year
Total Output (Per Year)
Input
Partial Productivity
LABOUR
(L)
CAPITAL
(C)
ENERGY
(E)
MATERIAL
(M)
MISC
L
C
E
M
2009-10
151363285
39975068
13325022.67
9491818
16434667
19734456
3.78
11.35
15.94
9.21
2010-11
106074798
36893066
12297688.67
10280433
13884135
16783987
2.87
8.62
10.31
7.64
2011-12
136433870
40219046
13406348
11243363
15574608
15312443
3.39
10.17
12.13
8.76
MISC
7.67
6.32
8.91
Table 4: Total Productivity ( Tea Estate 1 )
Total
Productivity=
Year
Total Output
Total Input
2009-10
151363285
59385713.67
2.54
2010-11
106074798
90139309.67
1.17
2011-12
136433870
95755808
1.42
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
Table 5: Output, input, partial productivity (Tea Estate 2 )
Year
Total
Output
(Per
Year)
Input
LABOUR
(L)
2009-10
2010-11
2011-12
1413630
05
1360847
28
1134518
89
32102706
33427652
26422195
Partial Productivity
CAPITA
L
(C)
1070090
2
1114255
1
8807398
ENERGY
(E)
10191997
MATERIA
L
(M)
23639298
11782227
21808450
9193572
21133351
MISC
L
C
E
M
MISC
149715
83.08
158977
48.60
152772
28.00
3.50
13.21
13.87
5.98
9.44
4.07
12.22
11.55
6.24
8.56
4.29
12.90
12.34
5.38
7.42
Table 6: Total Productivity ( Tea Estate 2 )
Year
Total Output
Total Input
Total
Productivity=
2009-10
141363005
91606486
1.54
2010-11
136084728
94058629
1.44
2011-12
113451889
80833744
1.40
Table 7: Output, input, partial productivity (Tea Estate 3 )
Year
2009-10
2010-11
2011-12
Total
Output
(Per
Year)
1413630
05.6
1120747
28.7
1097680
79.5
Input
LABOUR
(L)
43176434.
35
47606225.
77
34957987.
11
Partial Productivity
CAPITAL
(C)
14392144.
78
15868741.
92
11652662.
37
ENERGY
(E)
10471333
MATERIAL
(M)
11066157
7422167
11460295
8575631
1112659
MISC
L
C
E
M
MISC
183827
05
194339
53
196014
42
2.96
9.82
13.5
12.7
7.69
2.59
7.06
15.1
9.79
5.7
3.14
9.42
12.8
10.2
5.6
Table 8: Total Productivity ( Tea Estate 3 )
Year
Total Output
Total Input
Total
Productivity=
2009-10
141363005.6
97488774
1.45
2010-11
112074728.7
101791383
1.10
2011-12
109768079.5
75900381
1.44
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
Table 9: Output, input, partial productivity (Tea Estate 4 )
Year
2009-10
2010-11
2011-12
Total
Output
(Per
Year)
Input
1050367
5
1208796
0
1073321
8
LABOUR
(L)
9702377
10230520
8256322
Partial Productivity
CAPITAL
(C)
3234125.6
6
3410173.3
3
2752107.3
3
ENERGY
(E)
2369679
MATERIAL
(M)
1384855
2816569
2197810
3171480
1432079
MISC
L
C
E
M
MISC
179611
4
159523
4
189319
7
1.08
3.24
4.43
4.4
5.84
1.18
3.54
4.56
5.5
7.5
1.3
3.89
3.38
7.49
5.6
Table 10: Total Productivity ( Tea Estate 4 )
Year
Total Output
Total Input
Total
Productivity=
2009-10
10503675
18487151
.56
2010-11
12087960
20250306
.59
2011-12
10733218
17505185
.61
Total productivities of the four
tea estates, for various years are shown graphicallyTOTAL
PRODUCTIVITY
year 2011-12 . For Tea Estate 2 total productivity is
decreasing. In Tea Estate 3 it is decreasing 2010-11
and increasing 2011-12 .Lastly Tea Estate 4 total
productivity is increasing day by day due to control
of labour cost.
2011-12
2010-11
2009-10
3
2.5
2
1.5
1
0.5
0
T.E 1
T.E 1
A. REGRESSION ANALYSIS
T.E 2
Total Productivity versus partial (L, M, E, Misc.)
Productivity
The Regression Equation is
T.E 3
T.E 3
T.E 4
YEAR
Fig. 2: Graphical comparison of Total Productivity of
Tea Estates 1, 2, 3 and 4
IX. RESULTS AND DISCUSSION
It is seen that total productivity of Tea Estate 1 is first
decreasing in 2010-11 and again increasing in the
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Total Productivity = - 0.248 + 0.177 L+0.0721C +
0.0527 M + 0.0521 MISC + 0.0321 E
Where Total productivity is dependent variable and
partial productivity is independent variable. From the
above equation it is seen that labour is the key factor
for the productivity change and energy has the least
effect. Since labour productivity has the major
influence on Total productivity hence to increase
total productivity, increase in labour productivity by
reducing labour cost is necessary and have more
increase of total output. Since this equation has been
developed on the background of CTC method of tea
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
processing, the regressed equation is valid for all the
tea industries of Upper Assam.
A Pareto diagram is a type of bar chart in which the
various factors which contribute to overall effect are
orderly arranged, according to the magnitude of their
effect. This ordering of such factors helps in
identifying the ―vital few‖ (the factors that warrant
the most attention) from the ―useful many‖ (factors
that have a relatively smaller effect).
Here in this work, the main objective is to
improve the profit of tea garden, by scoring problems
on the basis of how much they are costing.
Table 11: Input parameters based on their importance
Normal Probability Plot of the Residuals
(response is TOTAL PRODUCTIVITY)
99
95
90
Percent
80
70
60
50
40
30
20
10
5
1
-0.3
-0.2
-0.1
0.0
Residual
0.1
B. PARETO ANALYSIS
0.2
0.3
Fig 3: Best fitted curve
100
90
80
70
60
50
40
30
20
10
0
100
89
VITAL
FEW
75
60
TRIVIAL
MANY
40
Fig 4 : Pareto Diagram
It is seen from the pareto analysis labour, capital and
material inputs plays the most influencing role in the
overall profit of tea estates visited.
X. LIMITATION OF THIS STUDY
Since only four tea estates have provided data related
to calculation of partial and total productivity so this
case study is not a general one. Unfortunately they
cannot provide all data related to data-sheet so this
study unable to view actual productivity
measurement.
100
90
80
70
60
50
40
30
20
10
0
CUMULATIVE PERCENTAGE
COST ASSOCIATED
PARETO ANALYSIS
the Tea Estates visited. Proper motivation , training,
organic fertilizer , new technology should be come
into play to achieve high productivity also there is a
growing need for advanced quality managerial
COST
ASSOCIAT
ED WITH
TEA
INDUSTRY
SCORE
(BASED ON
COST
ASSOCIAT
ED WITH
THEM)
PERC
ENT
CUMULATI
VE
PERCENT
LABOUR
40
40%
40%
CAPITAL
20
20%
60%
15
15%
75%
MISCELLA
NEOUS
14
14%
89%
ENERGY
11
11%
100%
MATERIAL
XI. CONCLUSION
From productivity calculation, regression and Pareto
analysis it is seen that labour, capital and material
productivity has the major effects on productivity of
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Practices .Tea industry in Assam are expected to rise
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 6 - October 2015
above from their present state through training and
skill development, in order to play a more important
role in supporting the requirements of India's
development process. The findings of this study will
help the Tea factory managers in improving
Productivity.
XII. REFERENCE
[1] ―Tea Statistics‖, Tea Board of India, 2014-15.
[2]William Hyber, Harold M.Levinson (1956): labour relations and
productivity in the building trades. Bureau of industrial relations,
University of Michigan, PP-23-34
[3]Asopa, V.N (2007), ‗Tea Industry of India: The cup that cheers
has tears‘, Indian Institute of Management, Ahmadabad, India
W.P.NO.2007-07-02, July
[4] R. Gupta and S.K. Dey, ―Development of a productivity
measurement model for tea industry‖, ISBN – 1819-6608, 20062010.
[5] Dr. Jared O. Ongog‘s and Mr. Albert Ochieng, ―Innovation in
the tea Industry: The case of Kericho tea, Kenya‖, ISBN: 09755853, Volume 13, 2013.
[6] Md. Azizul Baten, Anton AbdulbasahKamiland Mohammad
Anamul Haque, ―Productive efficiency of tea industry: A
stochastic frontier approach.‖ 31 May, 2010, ISSN – 1684 – 5315.
[7] Dr. S.K. Dey and Dr. R. Gupta, ― Development of safety and
productivity correlation Model for tea Industries of Barak Valley,
Assam e- ISSN – 2250-3021, Vol -2.
[8] Bagyalakshni, P. Ppm, irigam. S. Marimuthu, ―Influence of
Potassium solubilising bacteria on crop productivity and quality of
tea.‖ ISSN – 1991-637x2012.
[9]Ramakrishnan,( 2010), ‗Strategic Cost Management of Tea
Industry: Adoption of Japanese Tea Model in Developing Country
Based on Value Chain Analysis‘
[10] Nagoor, B.H (2009), ‗Performance of India‘s Tea Exports: A
Comparative Study of Major Tea Countries of the World‘,
Quantitative Approaches to Public Policy, PP-062-21.
[11] Chang et al, Agricultural Productivity for Sustainable Food
Security in Asia and the Pacific: the Role of Investment. FAO
Corporate Document Repository, originated by: Economic and
Social Development Department, 2010.
[12] Tea Board of India (2011) Role of Tea Board in Tea
Development in India, Report No. 10 of 2011-12.
[13]http://www.bloomberg.com/news/2011-02-25/india-mustextend-zero-dutyonmachine-imports-tea-group-says.html
accessed on 30th March, 2011.
[14]www.teaauction.com
[15] H.K.Barpujari, Comprehensive History of Assam, Vol-I,
Publication Board of Assam, Guwahati, Second ed. July, 2004,
p.40
[16] Govt. of Assam (2008) District Profile, Jorhat at
industriesassam.nic.in/jorhat.doc
[17]http://www.indialine.com/travel/assam/tea-gardens.html
[18]
Wikipedia
(2008)
Tea
Tribes,
available
at
http://en.wikipedia.org/wiki/Tea-tribes, visited on Aug. 15, 2008.
[19] Ananta Kr. Nath, Ajoy Krishna Dutta, ―Productivity Analysis
of Black Tea Production in Tea Industry.‖ ISSN: 2249-5770,
IJRMET Vol. 5, 2015.
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