Production is that activity that provides added value for the creation and supply of goods and services consists of the manufacture of these and at the same time, creates value, while productivity is the relationship between the number of products obtained and the resources used to obtain them.
What is Production?
It is that activity dedicated to the creation and supply of goods and services and the creation of value. The incorporation of new utilities to things is also considered, not only it generates qualities to the product different from those of its origin, but also modifications to its structure that give it a new use. This activity takes place within an economic system. It is the ability of a productive factor to create certain goods in a certain period of time.
It encompasses a range of different activities. It is the elaboration or manufacture of physical objects, but also the provision of services influences. At present, providing services constitutes the largest part of total production in industrialized countries.
What is Productivity?
Productivity is the relationship between the number of products obtained by a production system and the number of resources used to achieve said production. It is also defined as the relationship between the results and the time taken to obtain them. The less time it takes to achieve the desired result, the more productive a system is.
Productivity can be defined as an efficiency indicator that relates the resources used with the production obtained. Evaluates the ability of a system to produce the required products and its use of resources. Greater productivity using the same resources or producing the same goods and services implies greater profitability for the company.
Production vs Productivity
Difference between Production and Productivity in points
- Production is the process by which the factors of production are used to make goods and services.
- Productivity is the relationship obtained between the resources used in the production process and the amount of product produced.
- Productivity is an indicator of the efficiency of the production system.
Frequently Asked Questions
What are the Types of Productivity?
Some common types of productivity are Material productivity, Labor productivity, Capital productivity, total factor productivity, Partial productivity, and Factor productivity.
What are some common types of production?
Common types of production are: Batch production, Job production, match production, continuous production.