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Thread   What is difference between productivity& efficency? ... What is difference between productivity& efficency?       Post By: Rajesh    on: 6/11/2010 4:19:05 PM        Reply of this Thread   Replied by: Som Shekhar, on 6/11/2010 4:23:09 PM Productivity is a measurement of output vs input. Output could be in number of pieces/ number of Standard minutes whereas Input can be number of machines/ number of operators/ total manpower or total worked minutes. In case of apparel industry, productivity can be measured by three ratios: 1. Efficiency 2. Performance 3. Utilization Efficiency is the measurement for complete factory/ line/ section etc. It is the simplest measurement and can be calculated as the ratio of output vs input. Performance is the measurement of productivity for one particular resource like human (operator) or machine. The input is considered after excluding all lost times/ off standard time or time not available to the resource. Utilization is the measurement of available time to a resource vs complete time available. By calculation, it is also the ratio of efficiency and performance. Hence Efficiency = Performance * Utilization so, for example, if an operator made 100 pieces (0.3 min SMV) in 60 minutes and there was a machine breakdown time of 10 minutes then Performance = 100*0.3/(60-10) = 60% Utilization = (60-10)/60 = 83.33% Efficiency = 100*0.3/60 = 50% 50% = 60% * 50% Replied by: Ashok Kumar Verma, on 6/11/2010 4:27:37 PM PRODUCTIVIY Productivity is the ratio between output of a process and the inputs. In a garment factory the output can be the number of pieces while the input can be time, labours, machines etc. So, labour productivity = Output (number of pieces)/Number of labour required Machine productivity = Output (number of pieces)/Number of machines required EFFICIENCY Efficiency is the ratio between the actual output produced and the standard output. Let’s say that according to your calculations you expected 100 shirts per hour. But you actually produced 80 pieces. So your efficiency is 80/100 i.e. 0.8 or 80%. BASIC DIFFERENCE BETWEEN PRODUCTIVITY AND EFFICIENCY Productivity measures the output against the inputs required while efficiency measures the output against the expected standard output.