Monday, June 7, 2010

Difference between Production & Productivity

Production; The art or process of producing things.

Productivity; Efficiency in production

Example
Mega Co.Ltd had 20 Staff and produced 2'000 items in 2008. In 2009, Mega hired 10 more Staff and produced 2'800 items.

Production in 2008 = 2'000 items per year
Production in 2009 = 2'800 items per year
There is an increase in Production of 800 items per year.
Percentage increase in Production = 800/2'000*100= 40%

Productivity in 2008 = 2'000/20 = 100 items per staff per year
Productivity in 2009 = 2'800/30 = 93 items per staff per year
There is a decrease in Productivity of 7 items per staff per year.
Percentage decrease in Productivity = 7/100*100 = 7%

No comments: