Efficiency vs. Productivity
It is important to understand the differences between the concepts of productivity and efficiency. While both concepts are important to a company's bottom line, the words do not mean the same thing. If you think that these two concepts are the same thing or have similar meanings, you are not alone. This article will help you understand the meaning of each concept and how they relate to your bottom line. If you are already sure of their meanings and how they are different, then you can skip this article. But for those of you who might want a refresher course, or just don't know the difference, please read on. Failing to understanding the difference between _efficiency_ and _productivity_ might just be the reason why it seems so hard to take your company's work force to the next level of productivity. So, let me explain the difference.
Efficiency
Efficiency is a term that we use to describe the amount of effort or energy that it takes to accomplish a certain task or operation. When a process such as construction has many operations happening all at the same time, each operation should be as efficient as possible. Office personnel, for example, develop a system to be efficient when paper work needs to be filed. If this is done efficiently, then a piece of paper is easy to find the next time that you need it. In other words, finding that piece of paper requires a small amount of effort.
Productivity
Productivity, on the other hand, is a measure of how much work is done in a certain amount of time. For example, how many pieces of paper are filed and retrieved in a day. If the filing process is done efficiently, then the office staff is productive, that is if they can work together as a team. If each staff member has an _efficient_ system to file documents, but no other person in the office can figure out what folder the document was filed in, it'll be hard to improve the _productivity_ of the office staff.
Now, I'll illustrate this difference between the two concepts from another point of view. Let's use a rope and attach a high _efficiency_ motor to a cart that is loaded with spindles that need to be installed on a staircase. Turn the motor on and little effort is needed by the carpenter to move the cart over to where he is working. Say another carpenter wants to use the same spindles on a different staircase. He in turn attaches another motor and rope to the other side of the cart. Both motors are exactly the same horsepower. Both carpenters turn their motors on and...... An electrical _tug-of-war_ begins. Even though both motors are operating at the peak of _efficiency_, no spindles are being installed. Then we can say as far as this team of two carpenters is concerned, their _productivity_ has taken a disastrous decline. What's a supervisor to do in a case like this? …d