Difference Between Production and Productivity - Production vs Productivity

Difference Between Production and Productivity

The process of generating, growing, producing, or upgrading items and services is known as production. 

Productivity is a term used in economics to describe the efficiency or rate of output. It is the amount of output produced per unit of input (such as labor, capital, and equipment) (e.g. number of products).


Production is defined as a process or method by which a set of inputs is converted into an output with the desired utility and quality.

Production and productivity

To production people, production is the quantity produced by batches or a line regardless of input. A line supervisor reports daily production to such management (e.g., yesterday's Line-X production is 500 pieces).

Productivity, on the other hand, is the ratio of output to input.

Some of the uses of the word manufacturing are manufacturing of cutting section, production of sewing line-X. Etc.

Example: Suppose a sewing line makes 400 pieces a day by 35 workers.

Line production 400 units. (This is just a quantity. Input is not considered here. You do not know how many machines or labor were used to create this quantity.)

On the other hand, productivity (labor productivity) = 400/40 = 10 pieces per labor per shift.

(Labor input is considered to find the productivity of labor. You measure the performance of each labor. You have a clear idea about the performance of the line with the help of the productivity diagram.)

In Short, The level of productivity, in the production, determines the profitability, efficiency, and performance of the enterprise

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