What is productivity?

Although the concept of productivity has been generalized and is used in relation to any type of activity in order to measure its effectiveness, productivity, in origin, is linked to production. That is to say, we speak of productivity taking into account the variations in products produced or services performed, and the variations in the means used to achieve it. The means of productionAs we know, they are land, labor and capital, and productivity is closely related to an efficient association of means, as well as, with the time it takes for production to take place.

Ultimately, it is about producing as much as possible, making the most of available resources, and therefore wasting as little as possible. In this way, there is also greater profitability for the company. Understood in a broad sense, the productivity of a company is not only related to the production process itself, but also to the rest of the functions and departments of the company, although they are transversal in nature.

The reason is that said apartments They also constitute means and resources whose costs must be attributed to the products or services produced in their proportional part. Therefore, if there are inefficiencies in any department of the company, such inefficiencies translate into an increase in the fixed or variable costs of the company, which, in turn, leads to an increase in the costs of the products. And, unless the company is willing to assume the difference, also in an increase in the prices of the products.

Keeping track of the productivity of the company also allows making improvements and changes, in order to make it more profitable and productive. As far as possible, it may also be useful to take into account the productivity of competitors. In this case, to determine whether it is necessary to make any important changes in the company, in its market positioning, or simply to apply ideas that improve or make the production process more effective.

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