Hello to all, What is productivity? What is the difference between efficiency?

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If I produce 30 gadgets per day after making improvements to my process compared with 25 gadgets a day before, then I have improved productivity by (30/25 - 1 ) X 100 = 20%

If those gadgets used to cost me 25 cents each in materials, but since improving the process, my costs rise to 30 cents per unit, my material COST efficiency has fallen by ( 1 - 30/25) X 100 = 20%

But there are many measures of efficiency, time, raw material, labor, total cost etc.

Hope this helps

Brian Whatcott Altus OK

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Brian Whatcott

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