Main Activities of the NPC

The head quarter of the NPC (National Productivity Council) is at New Delhi. Moreover it has established nine regional directorates and two sub-regional directorates in the important industrial centers of the country. It has fostered establishment of local productivity councils in the important industrial cities of the country. At present more than 50 local productivity councils are working; e.g. Ahmedabad Productivity Council, Baroda Productivity Council etc, The regional directorate of the NPC looks after the Local Productivity Councils falling in its jurisdiction. Local Productivity Councils are constituted on the model as designed by the NPC. LPC represent the States, Government employers, employees and professional bodies.

The main activities of the NCP are:

1) To organize training programs directly or through Local Productivity Councils. Training is given to the participants in various courses like work study, industrial engineering, inventory control, preventive maintenance, plant layout, fuel and heat utilization etc. It has designed more than 1,000 courses in different subjects.
2) It organizes national and regional seminars and conferences
3) It conducts productivity surveys in different units and areas of management. This activity was introduced from 1963. It is more or less same as consultancy services. This provides general and specific investigation of organization management technical procedure etc of the individual units with a view to detect differences and discover areas of improvement. NPC has conducted many such surveys.
4) It sponsors management and technical personnel for training abroad under the scheme of technical assistance. Under the scheme of technical assistance, NPC has sent many personnel for training at USA, West Germany, UK, France, Japan, etc. They are trained in the areas like industrial management, industrial management industrial engineering, production management, personnel management, industrial relations, quality control and allied subjects.
5) It sponsors study teams for the productivity studies abroad
6) It disseminates the information and increase productivity consciousness through various publications as under:

a) Productivity Journal (quarterly);
b) NPC Information (Monthly);
c) Publication of reports of study teams on various subjects
d) Publication of training manuals and case examples of the impact of productivity techniques
7) It also maintains libraries at Headquarter, regional directorates and Local Productivity Councils. It also develops audiovisual aids (films) on productivity.
8) It helps in establishing and developing Local Productivity Councils and guides and supports their activities.
9) It guides and promotes efficient utilizations of fuel and heat in industry. For this purpose Fuel efficiency Service was established by NPC in 1964.
10) It supports the activities of Asian Productivity organization. APO has its Head quarters at Tokyo. NPC assists the study tams sponsored by APO visiting India. NPC has conducted and organized many programs in collaboration with APO.

The Government of India observed the year 1982 as Indian Productivity Year for nationwide movement on productivity consciousness.

ICOR: Incremental Capital Output Ratio:

Efficiency in the use of capital is measured by the incremental capital output ratio (ICOR) which means:

How many units of capital are needed to give one unit of output? We can ask the converse of this question: What is the percentage of additional output per unit of investment?

If we could lower our ICOR of 6.5 to what it was when we began planning, we should get a growth rate of above 7 percent even with the present level of investment.

Productivity of capital is low for two reasons: (1) we have relied on capital as the principal resource. (2) we have scant attention to land and labor. Our agricultural productivity is low. Our labor productivity is low as our industries are labor intensive, though ewe started with capital intensive industries. Capacity utilization is low in small sector. Large capital outlays are deployed for the backward region development. Capacity is spilt up amongst plants. There is more capital investment as a result.