METALURGIJA 46 (2007) 3, 217-220 217

A. KULAWIK et al.: CORRELATION BETWEEN THE EFFICIENCY OF MACHINERY AND EQUIPMENT

Received - Primljeno: 2006-06-21
Accepted - Prihvaceno: 2006-09-28
Review Paper - Pregledni rad
ISSN 0543-5846
METABK 46 (3) 217-220 (2007)
UDC - UDK 06:331.5:658.2/.3111
A. KULAWIK, S. WLUDYKA, R. PRUSAK
A. Kulawik, S. Wludyka, R. Prusak, Faculty oI Materials Processing
Technology and Applied Physics Czstochowa University oI Technology,
Czstochowa, Poland
CORRELATION BETWEEN THE EFFICIENCY OF
MACHINERY AND EQUIPMENT AND THE PRODUCTIVITY OF WORKERS
AND ITS EFFECT ON THE PERFORMANCE OF A METALLURGICAL UNDERTAKING
INTRODUCTION
Production is a refection oI the results oI operation oI
an industrial undertaking and illustrates the eIfciency in
the management oI particular manuIacturing elements. A
basic component oI the manuIacturing potential are fxed
assets, and particularly machinery and equipment, which
determine the production capacities. The condition and
evolution oI fxed assets, their technical and utility value,
degree oI activation and level oI utilization are thus the
determinants oI activity oI any undertaking.
Fixed assets are not the only element oI the manuIactur-
ing process, but exist in interrelation with the remaining
elements and should remain in proper proportion to them.
The basis oI fxed assets Iunctioning is providing means
oI production Ior the workers, hence they are substitutive
in character in relation to workIorce |1|. One oI the more
important technical and economic indices illustrating the
activity oI an undertaking is eIfciency, as identifed with
the term productivity. This index is a measure oI the eI-
Iectiveness oI use oI the undertaking`s resources |2|.
EIfciency is generally defned as the ration oI the
achieved eIIects to the incurred outlays X. This is the
In this paper the example of procedure of life and objectify work effectiveness analysis in metallurgical enter-
prise were presented. Besides, on the example of chosen units of metallurgical enterprise, results of analysis
- based on methodic proposed in the article - were discussed.
Key words: production management, human resource management, effciency of machinery and equipment,
productivity of workers' labour
KoreIacija izmedu ucinkovitosti strojeva i opreme i proizvodnosti radnika i ucinak na ekasnost meta-
Iurskog poduzeca. U ovome se clanku predstavljaju primjer funkcioniranja i objektivna analiza ucinkovitosti
rada u metalurskom poduzecu. Pored toga, na primjeru odabranih jedinica metalurskog poduzeca raspravlja
se o rezultatima analize koji se temelje na metodologiji koja je predlozena u clanku.
Kljucne rijeci: upravljanje proizvodnjom, upravljanje ljudskim resursima, ucinkovitost strojeva i opreme, proiz-
vodnost radne snage
total productivity that refects, at the same time, the tech-
nological level oI manuIacture, the methods oI production
organization and management, the employees` skills, as
well as changes in the capital outlays and in the sphere oI
production system operation. In practice, partial productiv-
ity is dealt with, where outlays only Iorm an element oI
the input vector. ThereIore, the productivity oI machinery
and equipment and the productivity oI employed workers,
as well as that oI inventories, energy or fxed capital can
be distinguished |3|.
The cause-and-eIIect character oI eIfciency suggests
the existence oI relationships between outlays and produc-
tion eIIects. The productivity oI two basic manuIacturing
elements, i.e. machinery and equipment and the labour oI
employed workers, defned as the ratio oI the production
volume to the man-hour worked, was subjected to examina-
tion. The purpose oI the paper was to fnd oI whether there
are any relationships between the quantities examined, and
iI so, what is their strength, direction and Iorm.
THE ANALYSIS OF CORRELATION BETWEEN
THE PRODUCTION VOLUMEAND THE
EFFICIENCYOF MACHINERYAND EQUIPMENT
The production volume, which was considered to be
the result oI interaction oI the eIfciency oI machinery and
equipment, or the objectifed work, was frst put to analysis.
METALURGIJA 46 (2007) 3, 217-220 218
A. KULAWIK et al.: CORRELATION BETWEEN THE EFFICIENCY OF MACHINERY AND EQUIPMENT
The results oI monthly observations Ior a period oI fve
years Irom 2001 to 2005, carried out in a metallurgical
undertaking, were analyzed.
In order to establish the relationship between the
quantities examined, a scatter diagram has been plotted,
which is shown in Figure 1. A clear positive correlation
relationship is visible on this diagram, as the increase in
machinery and equipment eIfciency has a corresponding
increase in production volume.
To defne the strength oI the correlation relationship,
the coeIfcient oI linear correlation was used, as determined
by the standardization oI covariance, which is expressed
by equation 1 |4|:



1
2 2
1 1
,
,
n
i i
i
yx
n n
x y
i i
i i
x x y y
C X Y
r
s s
x x y y

(1)
where:
x
i
, y
i
- empirical values oI variables,
, x y - mean empirical values,
C(X, Y) - covariance,
s
x
, s
y
- standard deviations.
In the case under examination, the Pearson correlation
coeIfcient r
yx
was 0,54, which means that the correlation
relationship is moderate.
To determine, what part oI the change in production
volume is explained by the change in machinery and
equipment eIfciency, the determination coeIfcient was
calculated, which represents the square oI the Pearson
correlation coeIfcient |5|.
In the examined case, the determination coeIfcient,
2
,
yx
r was 0,29, which means that only approx. 30 oI the
change in production volume was explained by changes in
the eIfciency oI the industrialized work.
The determination oI the correlation relationship be-
tween the quantities examined made it possible to estimate
the parameters oI the linear regression Iunction oI type
I, which serves Ior analyzing relationships between the
production volume and eIfciency oI machinery and equip-
ment. The linear regression Iunction oI type I is expressed
by equation 2 |6|:
f (x)
1
x +
0
, (2)
where:
- theoretical values oI the regression Iunction f(x), cor-
responding to a given level oI execution oI the variable
X,

1
- coeIfcient oI linear regression oI the variable Y rela-
tive to X,

0
- Iree term.
The determination oI the linear regression Iunction
made it possible to answer the question oI by how much
would the mean value oI production volume increase with
the increase in machinery and equipment eIfciency by a
unit. In the examined case, the linear regression Iunction
took on the Iollowing Iorm:
1236,6x 11339.
This means that with the increase in machinery and
equipment eIfciency by 1 Mg/h, the production volume
will increase by 1 236 tonnes per month.
For the evaluation oI the straight line ft to the empirical
points, the standard deviation oI the residual component
variance, as defned by equation 3 |4|, was used:


2
2 1
,
n
i
i
i
y
s z
n k

(3)
where:
y
i
- empirical values,

i
- theoretical values, as determined Irom equation (2),
n - number oI observations,
k - number oI estimated regression equation parameters.
The standard deviation oI residues, called also the mean
error oI estimation s(z
i
), amounted to 9 936,34, and this
is the order oI magnitudes oI the misft oI the production

i
METALURGIJA 46 (2007) 3, 217-220 219
A. KULAWIK et al.: CORRELATION BETWEEN THE EFFICIENCY OF MACHINERY AND EQUIPMENT
volume values to the theoretical values, as determined Irom
the regression Iunction.
In order to establish the percentage value oI the error,
the coeIfcient oI variation, as expressed by equation 4
|4|, was used:

,
i
s
s z
V
y

(4)
where:
s - standard deviation oI residues,
y - mean value oI the Ieature Y.
Calculated Irom equation 4, the coeIfcient oI varia-
tion, V
s
, amounted to 0,138, which represents an error in
the order oI 13,8 .
THEANALYSIS OF CORRELATION
BETWEEN THE PRODUCTION VOLUME AND
THE PRODUCTIVITYOF WORKERS LABOUR
The production volume was recognized, as beIore,
to be the result oI the productivity oI employed workers.
ThereIore, the strength and direction oI the relationship
between the two quantities was examined. The correlation
relationship already appears on the scatter diagram and
is, as in the frst case examined, positive in character. The
diagram oI production volume and productivity scatter is
shown in Figure 2.
In order to deepen the analysis oI the relationship bet-
ween the examined quantities, the Pearson coeIfcient oI
linear correlation and the linear regression Iunction oI type
I were established.
The correlation coeIfcient, established according to
equation (1), amounted to r
yx
0,87, indicating a strong
correlation between the production volume and the pro-
ductivity.
Whereas, the linear regression Iunction (equation 2) in
the analyzed case took on the Iollowing Iorm:
495326x + 12736.
It means, thereIore, that an increase in the eIfciency oI
live work by 1 Mg/h will result in an increase in produc-
tion by 49 532 tonnes.
The error estimation based on equatione (3) and (4)
Iound that the empirical values oI production volume might
diIIer Irom its theoretical values by 47,5 tonnes, on average,
which represents an error in the order oI 0,06 .
In turn, the determination coeIfcient,
2
,
yx
r established
to be equal to 0,75, means that 75 oI the changes in
production volume have been explained by the changes
in productivity.
MULTIPLE CORRELATIONAND REGRESSION
As has already been shown in the paper, both the eI-
fciency oI machinery and equipment and the productivity
oI workers` labour have an eIIect on the production volume
and remain in a clear correlation with it. ThereIore, the
interrelation between these three quantities was examined
by means multiple correlation and regression. To this end,
the coeIfcient oI multiple correlation with the symbol R
w
was used Ior the three variables in equation 5 |5|:
2 2
12 13 12 13 23
2
23
2
,
1
w
r r r r r
R
r

(5)
where:
r
12
- coeIfcient oI simple correlation between the depend-
ent Ieature (1) and the independent Ieature (2),
r
13
- coeIfcient oI simple correlation between the depend-
ent Ieature (1) and the independent Ieature (3),
r
23
- coeIfcient oI simple correlation between the inde-
pendent Ieatures (2) and (3);
2 2
2
0, 54 0, 87 2 0, 54 0,87 0, 42
0,89.
1 0, 42
w
R

The joint eIIect oI the machinery and equipment eI-

fciency, X
1
, and the workers` labour eIfciency, X
2
, on the
production volume, Y, is very high, greater that the eIIect
oI each oI the eIfciencies.
The square oI multiple correlation, as well as that oI the
Pearson coeIfcient oI correlation, is called the determination
coeIfcient |5|. In the case under examination,
2
0, 79,
w
R
METALURGIJA 46 (2007) 3, 217-220 220
A. KULAWIK et al.: CORRELATION BETWEEN THE EFFICIENCY OF MACHINERY AND EQUIPMENT
which indicates that 79 oI changes in the eIfciency oI
machinery and equipment and in productivity explains the
changes in the Iormation oI production volume in the metal-
lurgical undertaking examined. Thus, other manuIacturing
Iactors have infuence on the changes in production volume
only in 21 .
On the other hand, the equation oI the linear regression
Iunction oI type I Ior three variables is established based
on equation 6 |5|:

0
+
1
X
1
+
2
X
2
,
where:

0
- Iree term,

1
- coeIfcient oI linear regression oI the variable Y rela-
tive to X
1
,

2
- coeIfcient oI linear regression oI the variable Y rela-
tive to X
2
.
In the case under examination, the regression equation
took on the Iollowing Iorm:
10415,15 436,23X
1
44334,8X
2
.
The obtained regression equation implies that with an
increase in the machinery and equipment eIfciency, X
1
,
by 1 Mg/h and with the fxed productivity X
2
, the volume
oI monthly production will increase by 436,23 tonnes.
Whereas, with an increase in the productivity X
2
by 1 Mg/h
and the unchanged level oI the machinery and equipment eI-
fciency X
1
, the volume oI monthly production will increase
by 44334,8 tonnes.
In the multiple regression examined, the estimated er-
ror established on the basis oI equatione 3 and 4 amounted
to nearly 8.
CONCLUSIONS
Using the statistical correlation analysis to examine
the relationship between the eIfciency oI machinery and
REFERENCES
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B. Wersty: Analiza ekonomiczna przedsibiorstw, Wydawnictwo
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equipment and productivity on the one hand and the pro-
duction volume in the metallurgical undertaking on the
other hand, a very high interrelation between the quantities
examined has been Iound.
An increase in the eIfciency oI both machinery and
equipment and oI the workers` labour results in an increase
in production volume.
Moreover, the joint eIIect oI changes in the eIfciency
indices examined explains in 79 the changes in devel-
oping production volume. This means that machinery and
equipment and employed personnel are basic components
oI the manuIacturing process in the undertaking examined
and determine its production abilities.
The obtained results indicate also a correlation between
the eIfciency oI machines and equipment and productivity.
Thus, the level oI the applied technology and engineering
and the degree oI their utilization by the undertaking will
be determining the work oI employees, and thereby the
size and structure oI employment.
It should also be noted that, in the undertaking exam-
ined, the increase in productivity by a unit will result in
an increase in monthly production volume larger than the
unit increase in the eIfciency oI machinery and equipment.
This means a better use oI working time by the workers
compared to the eIIective time oI the objectifed work. This
is likely to result Irom the obsolete level oI technology and
engineering and indicates a need Ior investments into this
sphere oI the undertaking`s activity.