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Productivity & Efficiency

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What do you understand by " productivity" and "efficiency"? Can you discuss three reasons why both concepts matter in any production activity?

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Productivity is concerned with quantity or output whereas efficiency is concerned with quality. Productivity focuses on achieving certain output or quantity related goals, such as producing X number of units in a given timeframe whereas efficiency is focused on output with least waste or output produced with least possible use of ...

Solution Summary

Discusses the concepts of productivity and efficiency in production.