Production expressed as units is output. On the other hand, productivity is the relationship between what you put in against what you get out. In other words are productivity is about the relationship of your inputs and your outputs. Productivity is not about producing products on an assembly line as fast as possible without any consideration for quality, safety and cost. When you're measuring productivity you are looking at the costs of the inputs and the value of the outputs. This is just one measure of productivity. Production is different to productivity although some people treat them the same way. Production is only concerned about output and is described as production volume. If as a manufacturer, you produce 100,000 units a year then that is your volume output. On the other hand, productivity is the ratio between output and input. It clearly shows us the relationship between input and output. This relationship is expressed as output divided by input
On top of the labor (people's effort), the other inputs can be capital (money) and raw materials.Efficiency and effectiveness are two vital aspects of productivity. Efficiency refers to how all well the various inputs are combined and how the work is performed. Effectiveness refers to the degree of influence the inputs have on the outputs.
For example, if there are two people doing the same job and one has a higher level of productivity than the other, it is worthwhile looking at the way they do the work. If they work the same number of hours, working the same department, sit next to each other, and one of them completes more work than the other. It is valuable to look at the way the more successful person is doing the job.Although the input is the same the difference may be due to any number of factors. The sort of factors that would make a difference may include motivation, training, experience, knowledge, skill, methods, leadership, planning, organisation or intelligence.
To sum up, we can say that productivity is how well various resources (inputs) are brought together and put into use for achieving special goals or results. Productivity is the key to profitability. It is doing things better and working smarter, not just harder.
To do so, we have to tap the reservoir of knowledge, creativity and productivity locked in our workforce through education, training, motivation, technology and group effort. The challenge is how to secure the maximum possible improvement in performance or results while using the minimum possible resources. With proper planning and motivation, the job of productivity growth can be achieved. However, certain facts have to be borne in mind when launching the productivity improvement program.
The productivity growth is more likely to be achieved if the set objectives are communicated and understood by the employees. Let us say, the objective is: Reduce rework (which results from defective products). The employees must know the current rework rate, the expected reduction targets, the reasons for the current rework rate, and the methods to improve the rate. By making periodic checks, the supervisors can make sure whether the employees) understand the objectives and make efforts to accomplish them.
Peter Mitchell has been an adviser to businesses of all sizes and types for the last 35 years. He has used all his experience to write a step-by-step guide for business owners and mangers which is complimentary. If you download this guide, you are eligible to buy his latest book "The Key to Productivity"at a special price for a limited time.
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