Today’s topic is on the difference between productivity and efficiency and why they are not the same thing.  Be sure to stay till the end of the video as I will tell you which one is more important.


According to Webster’s dictionary productivity is the quality or state of being productive.  A simpler definition that would allow us to measure of productivity would be output per unit of time. In comparison Webster’s dictionary states that efficiency is the quality or degree of being efficient. So basically, productivity is the measurement of how many widgets you produce a day whereas efficiency is the quality of the items produced that day.  Let’s look at an example.

An Example

If company A manufactures 1,000 circuit boards a day and company B produces 1,500 circuit boards a day.  It looks like company B produces 500 more circuit boards and therefore is more productive than company A.  This would be true if company B has a lower error rate.   But if the company must repair 800 boards that were produced and company A doesn’t have to repair any boards, then company A is more efficient than company B.  Remember you must look at both the efficiency and the productivity before a decision can be made.

The Difference

The biggest difference between productivity and efficiency is that productivity measure the bulk output.  In comparison, efficiency measure the proportion of output that works as intended.  Therefore, it takes both productivity and efficiency to determine your true productivity.  Remember that it is best not to increase your productivity without taking into consideration the efficiency side of the equation.  It is no good to produce 100 widgets a day only to have to repair 50 widgets.  It is better to produce 50 widgets that all work as intended.


In the beginning of this video, I told you that I would let you know which is more important.  Productivity or efficiency.  While productivity helps you accomplish your task quickly it does not guarantee that they are completed correctly.  In comparison, efficiency is important part of your workplace because it can help you save time and money.  Remember you want the best quality widgets to be produced.  Therefore, efficiency is more important than productivity.


Be sure to subscribe to the channel and leave me a comment below. Until next time please be safe.

For more blog articles please click here.