7 April 2018

Difference between productivity and production

Production means the process of converting the raw material into the finished product by performing a set of manufacturing operations in a predetermined sequence. Production refers to the absolute output. Thus, if the input increases the output will normally increases in the same proportion. But the productivity remains unchanged. The output increases with the same input of resource or we get the same output with lesser input of the resource, the productivity increases. 

Production means the output in terms of money without any regard to the input of resource while productivity is a human attitude to produces more and more with less and less input of resource.

Now let we summaries the difference between them one by one point wise below.

Differences :

  • Production is the act of manufacturing goods for there use or sale while productivity is the rate at which goods are produced.
  • Production is actual process of conversion and productivity is the utilization of resources to form goods.  
  • Production is measure of produce good while measure of efficiency is called as productivity. 
  • Production is process while productivity is measure. 
  • Production is number of units actually produced while productivity is ratio of output to input.
  • Production is absolute term and productivity is relative term.