At present there is no real consensus on the exact definition of productivity, but as we saw in the post “Difference between effectiveness and efficiency” there are certain parameters with which we can have a general idea of the concept. Generically the productivity It has to do with the input-product relationship, since the more products are manufactured with the same amount of input, it is said that the company is more productive. This relationship is given by the formula Products / Inputs = Productivity. Another important factor to consider is the quality, because more units of products can be produced with the same inputs but with a quality deficient, this brings catastrophic results in the effectiveness of the company and does not contribute anything to its increase. It is for this reason that productivity it has to be accompanied by quality for the concept to be well applied.
According to the Business Dictionary it is:
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A measure of theefficiency of aperson, machine, factory,system, etc, in the conversion ofinputs into productstools.
Productivity iscalculate by dividingthe productionaverage byperiodfor the coststotal incurredor resources(capital,Energy,materials,personal)that are consumed inthat period.Productivity isa critical determinant ofcost efficiency.
