Difference between Production and Productivity

Difference between Production and Productivity

1. Production is defined as the act of producing goods and services but productivity is defined as the rate at which goods and services are produced or given.

2. Production is the process of conversion of input into output,but productivity is the utilization of resources into finished product.

3. Production is the amount of work done or manufactured I.e output but productivity is the amount of work one gets for a certain spendings.

4. Production reflects the volume of production of goods/services by an enterprise but productivity reflects the operating efficiency of enterprise.

5. Production is the measure of produced goods but productivity is the measure of efficiency.

6. While defining production,no reference is made to the quality or quantity of input resources but once the concept of efficiency with which input resources are utilized , is Incorporated,we enter the field of productivity.

7. Production is a function of an organization which is associated with the conversion of range of inputs into desired output but productivity is a measure of how efficiently resources are combined and utilized in the firm , for achieving the desired outcome.

8. Production may not be increased by economic & efficient use of input resources but productivity can be increased by the economic & efficient use of input resources.

9. In production if we give some input like labour, machine, capital, material, time etc be obtain output but in productivity we obtain relation between input and output.

10. Production represents the number of units produced but productivity represents ratio between output and input.

11. Production determines value of output but productivity determines the efficiency of factors production.

12. Production represents absolute terms but productivity represents the relative terms.

13. Production is a process but productivity is a measure.