Differences between Productivity and Efficiency

Productivity and efficiency are the most important KPI for any production industry. We have separate posts on Productivity and Efficiency. In this article, I will discuss the differences between them.

Difference between Productivity and Efficiency are shown in the below table.

Subjects	Productivity	Efficiency
Definition	Productivity is the ratio of output and input	Efficiency is the ratio of total minutes produced and spent minutes.
Formula	Output/Input	(Produced Minute/Spent Minute) × 100 = [(Production × SMV)/(Manpower × Shift Hour × 60)] × 100%
Types	It can measure as labor productivity, machine productivity, sewing line productivity etc.	It can measure as labor efficiency, machine efficiency, sewing line efficiency etc.
Requirements	No need product SMV	Must need product SMV
Example	If day production of a sewing line is 1000 pieces and total worker worked 50, then the productivity = 1000/50 = 20 pieces/labor/day.	If day production of a sewing line is 1000 pieces, garment SMV is 18.5, shift time is 8 hours and total worker worked 50, then the productivity = [(1000 × 18.5)/(50 × 8 × 60)] × 100% = 70.08% pieces/labor/day.