If we work in the operation of any industry, then our task is related to these two words. The operation team deals with these two things as their job description. In this post, we will discuss the main differences between production and productivity. Examples are taken from the garment manufacturing industry. Sometimes, you might need to explain the difference between production and productivity. I have explained it here.
Production is defined as a process of converting input quantity into output quantity having the desired utility and quality. 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. Today’s production is 620 pieces, Yesterday’s production of line-x is 500 pieces).
Productivity is the ratio of output and input. Some of the usages of the Production term is Production of the cutting department production of the sewing line-X. Etc. Example: Suppose a sewing line has produced 400 pieces by 35 workers daily. 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 labor is utilized to make this much quantity.) On the other hand, productivity (labor productivity) = 400/35 = 11.42 pieces per labor per shift.
Difference Between Production and Productivity
|A process that converts input to output in order to make a product.
|Productivity is the ratio of output and input.
|It is just a manufacturing process
|It is measurement of production with its efficiency.
|It is just dealing with the number of units produced
|It is the ration between input and output, WIP is come here as well with calculation
|Production require hire and putting manpower to work, get the production output
|Productivity improvements require optimization of processes, technological advancements, skill development, and effective resource allocation.
In summary, while production and productivity are intertwined, they represent distinct aspects of business operations. Production deals with the creation of goods, while productivity measures the efficiency and effectiveness of this creation process. Both are vital for an organization’s success and achieving a balance between the two is essential for sustainable growth and competitive advantage in today’s dynamic business landscape. Labor input is considered to find labor productivity. You measure the performance per labor. With the productivity figure, you have a clear idea about the line’s performance.