Decomposing the productivity index in its main factors, applied at the MSME of graphic arts. Case study.

Abstract

It is limited the information provided by the productivity index, which only measures the relationship between production and the resources used to obtain it; in addition, this index is a relative measure and in the past tense. How can a MSME improve productivity with this number? This work shows the decomposition of the productivity index in its mains factors, Labor and Capital, through applying Cobb – Douglas Production Function, into a study case over a graphic arts Mexican manufacturer of equipment. The results show that it is possible to use the proposed productivity index in this work, doing the validation with de typical Sumanth mathematical expression, finding no significant difference between both equations.