Production and Productivity
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Explain the difference between production and productivity. Under what circumstances may it be possible for an organization to increase its production without increasing its productivity?
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Solution Summary
This response compares the concepts of production and productivity.
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Production refers to the physical output in the production process. For example, a company produces 10 cars, but it is unclear whether the 10 cars are made by 10 workers or 100 workers.
Productivity is production with respect to another factor such as time, people, money, etc. For example, 10 cars per day or 10 cars by 100 workers or 10 cars costing $10,000 in labor, etc.
Production and productivity may not be linear in relationship. If 1,000,000 cars are made daily, that may be high production but if 5 million workers are needed to achieve this result, than it may be low productivity.
Both ...
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