Productivity Vs Production

Productivity means

• It measures the amount of output that can be produced from a given amount of input over a period of time. Or Output per worker/factor for per hour/time period.

• Output per worker/factor

• None

• amount of output that can be produced

Production means

• Inputs produced

• The transformation of raw materials (input) to finished or semi-finished goods and services (output).

• Output produced

• None

Plant means

• Land

• Capital and Land

• A workplace includes premises such as a warehouse, retail outlet, office or factory.

• Labour

Diversification means

• One product being produced

• Input

• Producing a range of products in case demand for any one of them falls.

• Output

Increase in productivity means

• Economies of scale

• More output produced

• Increase in output

• When more output or revenue is produced from the same amount of resources or the same output or revenue is produced using fewer resources