Key difference: Productivity is the rate at which goods are produced. Production is defined as the act of manufacturing goods for their use or sale.

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Productivity is the ratio of output to input in production. It is a measure of the efficiency of production. It is related to the utilization or the use of resources to produce goods. It increases output. It is the increase in output from each unit in the production process. If inputs remain the same and the production of output increases, then there is a rise in the level of productivity. If the output rises in a greater proportion than the increase in the input, there is still a proportionate rise in the level of productivity. However, if the output rises at a lower rate than the input, then there will be a fall in productivity, even though there is an increase in production on the whole. Higher productivity results in a lower cost per unit of output resulting in higher levels of profit for a company. Thus, it refers to the efficient utilization of resources. High productivity increases economic well-being. It increases the income and the standard of living of the people. It brings in money for the company.

Productivity has the following advantages:

• It emphasizes the efficient utilization of all the factors of production which are scarce universally.
• It attempts to eliminate wastage.
• It facilitates the comparison of the performance of a company to its competitors or related firms, in terms of aggregate results and of major components of performance.
• It enables the management to control the performance of the company by identifying the comparative benefits arising out of the use of different inputs.

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According to Wikipedia, production is the act of creating output, goods or services which have values and contributes to the utility of individuals. This may include factors of production other than labor. The factors of production are the inputs to the production process. The finished goods are the output. The input determines the quality of the output product. Input is the starting point and output is the end point of the production process, and such an input-output relationship is called the production function.

There are three basic factors of production: land, labor, and capital. All three are required in combination at a time to produce a commodity. In economics, production means creation or an addition of utility. Factors of production are any commodities or services used to produce goods or services. These factors are specifically referred to as primary factors. Energy and material are referred to as secondary factors. The primary factors facilitate production but neither become part of the product nor become significantly transformed by the production process. Human capital and entrepreneurship are also considered as factors of production. The factors affecting the production are as follows:

• Land represents all natural resources, such as timber and gold, used in the production of goods. 
• Labor is all of the work that laborers and workers perform at all levels of an organization.
• The entrepreneur also takes on all of the risks and rewards of the business.
• The capital is all of the tools and machinery used to produce goods or services.

Difference between productivity and production:

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