Productivity: measuring & improving performance

Producing more is not the same as producing more efficiently. In this lesson we separate two words students always confuse — production and productivity — then define productivity precisely as output per unit of input and calculate labour productivity for ourselves. We see why rising productivity is the single most important source of lower costs, competitiveness and higher living standards, work through the main ways to raise it, and evaluate the costs and limits the AS examiner expects you to weigh.