Measuring productivity for all inputs at once is called total productivity measurement.
In practice, it may not be necessary to measure the effect of all inputs. Many firms measure the productivity of only those factors that are thought to be relevant indicators of organizational performance and success. Thus, in practical terms, total productivity measurement can be defined as focusing on a limited number of inputs, which, in total, indicates organizational success. In either case, total productivity measurement requires the development of a multi-factor measurement approach. A common multi-factor approach suggested in the productivity literature