Productivity and Production both are numbers – management wants both at peak. Let’s understand the difference between both.
Productivity
- Productivity is the ratio of output to Input. It is an index which shows how effectively an organization is using its resources (inputs).
- In the case of a garment factory, the output can be taken as the number of pieces produced, while “inputs” are the people, machines and time.
- To understand the difference in a better way let’s take one example –
- Suppose a garment factory produces 5000 pieces in a day with 500 operators.
Production
- Production is a process to transform raw material input into an output which will have desired quality.
- Production is just a number or quantity of output produced at a particular time.
- Production is measured with respect to unit time.
- Production can be measured with the different department also like
- Production of cutting department, sewing department and sewing department.
Productivity = 5000/500=10 pieces per operator are the productivity of the factory.
Production= 5000 pieces is known as production of that factory.