Production vs. Productivity

Attribute	Production	Productivity
Definition	The process of creating goods and services	The efficiency of production, measured by output per unit of input
Focus	On the quantity of output	On the efficiency of output
Measurement	Units produced per time period	Output per unit of input (e.g. labor, capital)
Goal	To increase output	To increase efficiency and effectiveness
Factors	Raw materials, labor, machinery, technology	Efficiency, technology, skills, motivation

Definition

Production and productivity are two terms that are often used interchangeably, but they actually have distinct meanings. Production refers to the process of creating goods or services, while productivity measures the efficiency of that production process. In other words, production is the act of making something, while productivity is how well that something is made.

Attributes of Production

When it comes to production, there are several key attributes to consider. One of the most important attributes is the input required to produce a good or service. This includes factors such as raw materials, labor, and machinery. Another attribute of production is the output, which is the end result of the production process. This could be a physical product, such as a car or a computer, or a service, such as consulting or healthcare.

• Input required for production
• Output of the production process

Attributes of Productivity

Productivity, on the other hand, is all about efficiency. It measures how well resources are utilized in the production process to generate output. One key attribute of productivity is the ratio of output to input. This ratio can be used to compare the efficiency of different production processes or to track improvements over time. Another attribute of productivity is the impact on profitability. A more productive production process can lead to lower costs and higher profits.

• Ratio of output to input
• Impact on profitability

Measurement

Production and productivity are both measured in different ways. Production is typically measured in terms of the quantity of goods or services produced. This could be measured in units, such as the number of cars produced in a factory, or in dollars, such as the revenue generated by a consulting firm. Productivity, on the other hand, is measured as output per unit of input. This could be output per hour of labor, output per dollar of raw materials, or any other relevant input.

Factors Affecting Production

There are several factors that can affect production. One key factor is technology. Advances in technology can lead to more efficient production processes, allowing for higher output with the same input. Another factor is the availability of resources. If raw materials are scarce or expensive, production may be limited. Labor is also a key factor in production, as skilled workers are needed to operate machinery and perform tasks.

• Technology
• Availability of resources
• Labor

Factors Affecting Productivity

Productivity is influenced by many of the same factors as production, but in different ways. For example, technology can have a significant impact on productivity by automating tasks and reducing the need for manual labor. The availability of resources is also important for productivity, as a lack of key resources can slow down the production process. Another factor that can affect productivity is the skill level of workers. Highly skilled workers are often more productive than those with less training or experience.

• Technology
• Availability of resources
• Skill level of workers

Conclusion

In conclusion, production and productivity are closely related concepts, but they have distinct attributes and measurements. Production is the act of creating goods or services, while productivity measures the efficiency of that production process. Both production and productivity are influenced by factors such as technology, resources, and labor, but in different ways. By understanding the differences between production and productivity, businesses can optimize their operations and improve their bottom line.