Difference between Production and Productivity

The main difference between production and productivity is discussed in this post. Examples are taken from the garment manufacturing industry.

Sometimes you might need to explain what is the difference between production and productivity? I have explained it here.

Production:

Production is defined as a process or procedure to transform a set of input to an output having the desired utility and quality.

Production and productivity
To the production people, Production is the quantity produced by the batch or a line irrespective of input. Like a line supervisor reports as daily production to management (e.g. Yesterday’s production of line-x is 500 pieces).

Productivity:

On the other side, Productivity is the ratio of output and Input.

Some of the usages of Production term is Production of cutting department, production of the sewing line-X. etc.

Example: Suppose a sewing line has produced 400 pieces by 35 workers in a day.

Production of the line is 400 units. (This is just the quantity. Input has not been considered here. You don't know how many machines or labours is utilized to make this much quantity.)

On the other hand, productivity (labour productivity) = 400/35 = 11.42 pieces per labour per shift. 
(To find labour productivity labour input is considered. You measure the performance per labour. With the productivity figure you have a clear idea about the performance of the line.) 

This is a tiny part of the book Industrial Engineering Guide to Job Interview Preparation. Read the book.

Comments

Facebook Fan Page