Difference Between Production and productivity

The basic things between that, all organizations deals are ,Production and Productivity.Any organisation is for production, and profit lies in productivity.

So, we first introduce Production and Productivity, a basic definition.

Production –

The process of converting inputs like- land ,labor,capital and information into useful goods or services is known as Production.

Productivity –

It is ability or method that convert less input into maximum output in less time.


Now, we will understand Production and Productivity in descriptive way.

Production –

The basic concept of formation of any organisation or institution is, for a type of output, that gives profit or benefit to that organization in the form of revenue or satisfaction.

For that output that organisation have to run process, system that convert physical inputs like- raw material, sub assemblies, semi-finished goods, and non physical  inputs like- knowledge, ideas, efforts, information, into goods for sale and payable services.

Productivity –

Productivity plays main role in success or growth of any organisation. It is tool to measure efficiency of production.A good organisation have to work towards productivity. There are different tools that play important part in productivity.

For productivity you have to find out bottleneck of entire production process or system and after finding it will have to make efforts to remove it from bottleneck.

Then go towards another bottlenecks, working on bottlenecks automatically raise efficiency of production and so raise productivity.

There are different tools used in Productivity, that are as below –

  • Proper machine utilization
  • Proper man power utilization
  • Improving workplace or working environment
  • Different process systems or formats
  • Machine maintenance
  • Manpower training