Difference & Distinguish Between Manufacturing Related "Productivity and Efficiency."

SHARING THE DISTINGUISHED DIFFERENCES IN-BETWEEN THE IMPORTANT TERMS "PRODUCTIVITY & EFFICIENCY" ONCE AGAIN REPEATING WHAT HAD BEEN LEARNT FROM EXPERTISE FOR THE BENEFIT OF OTHERS TO UNDERSTAND IF THEY ARE IN THIRSTY TO KNOW/LEARN.

Know the Difference & Distinguish Between Manufacturing Related "Productivity and Efficiency."

The main two key concepts in Manufacturing that often get misconstrued or even used synonymous are Productivity and Efficiency. 

What the difference in between Productivity & Efficiency?

Despite these two words pertaining to improving the production process of a manufacturing, agriculture, or service sector companies refer to different things. Once think about the differences, it can pave the way for better utilization of productivity and efficiency in manufacturing. 

Productivity

The definition of “productivity” from a manufacturing perspective is “the ratio of output to input in production” and is a measure of efficiency. When something is produced, how much time does it take? What is the quantity—not quality—of the production rate? Think of it like this: The manufacturing line produces 500 units in one week & if needs to boost up production rate to 700 units in the following week; it shows that the productivity has increased by 200 units. 

Furthermore, increasing efficiency can lead to more productivity. Once the manufacturing process gets bolstered by Better Sales, begin making investments in elevating the production rate. This may be done through purchasing automated equipment, improving logistics, acquiring more skilled laborers, and implementing LEAN methodologies & so it makes the line moves faster for the increase in smooth Productivity. 

Efficiency

Where productivity was more focused on increasing the quantity being manufactured, efficiency refers to the quality and effectiveness of the work being done. The definition is “the ability to do something or produce something without wasting materials, time or energy.” This means that efficiency is often expressed by a percentage, with 100% being the ideal.

However, many manufacturing companies may only be running at 60-80% efficiency. For example, if produced 40% more units in one month than the prior period, but later learned 30% of those units were defective. Though productivity has gone up, efficiency went down. Better selection of raw materials can lead to increased in efficiency by being easier to work worth and improving consistency.  

Another way to look at efficiency is the number of earned hours of Good Quality Productive Work divided by the number of work hours available in a day. It may also refer to this as a measure of the return on payroll & proper methods and training can lead to improving efficiencies. Hence should have great list of Manufacturing KPIs and Production KPIs to get started on measuring the metrics that matter.

There are various ways to boost efficiency that also boost productivity: investing in continual improvements in the manufacturing line and those responsible for it. 

How Can Productivity and Efficiency Find Balance

Finding a steady balance between productivity and efficiency is crucial to making manufacturing company function at its best. Emphasizing one over the other is a dangerous game to play. Conversely, becoming strict about efficiency may result in frightening employees. This is where we need to be careful when implementing LEAN methodologies properly so that workers are not concerned about losing their jobs due to increased efficiencies. 

So, how do the two can be merged? A common practice is to increase output while investing on employees simultaneously. Whenever changes are made, it is natural for employees to be uneasy, so Effective Training and understanding of the entire production line, right down to how important they are in making the product or delivering the service, will help. It is just as important for employees to know how the product is going to be used so they can contribute in improving the product or service first hand. Hence the employee empowerment is the right key.

To sum it up, productivity is solely about output versus input. Meanwhile, efficiency deals with doing the correct things the right/correct method by minimizing mistakes and losses while maximizing the use of valuable resources. When these two concepts come together harmoniously, then the company will see an increase in both quantity and quality. Though different, productivity and efficiency rely on one another in nature with great affordability.

SPECIAL NOTE: Good luck for maximizing the effectiveness in organizations.

SUNDARAMURTHY VELMURUGAN, LEATHER PROFESSIONAL CONSULTANT from a2z Leather Professional Consultancy, PONDICHERRY; [email protected] & [email protected] & Whatsapp: +918973231705