Difference between Production and Productivity in a Manufacturing Unit

 

Production:

Production is a complete process to transform raw material input into an output with required quality. The sum of produce quantity of a line is treated as production end of the day of that line. Suppose line A produce 660 pcs in 10 hours shift with 20 manpower. So that line supervisor will report to management or his superior, production is 660 pieces. No need others data like how many labor/machine, working hour, achieve efficiency level get involve there to produce that much quantity although all those things used there.

Productivity:

Productivity is the ratio of output and input. Productivity is measured to observe how effectively a company using their resources.

Productivity measuring formula = Output ÷ Input

Difference between Production and Productivity

From first example,

Here output = 660 pcs & input 20 manpower.

So, Labor Productivity = 660/20 = 33 Pieces.

By the same way we can measure machine productivity. To measure machine productivity, one need how many machines was involve producing that quantity?

 Machine Productivity = Total Output ÷ Number of used machines

Production and productivity- both are important in a manufacturing unit and directly co-related with each other. When productivity will increase then production also will increase. Read how to improve productivity in an organization.

Read Also: Difference between Productivity & Efficiency