Productivity = Output / Input
Productivity at its most basic level is the rate of output per unit of input. It is a very simple concept that sounds more confusing then it really is. For an example lets say that a factory worker in Factory A can produce 50 parts per hour. While an employee at Factory B can create 200 of the same parts in an eight hour shift. Which factory has the higher level of productivity?
Well:
Factory A = 50 parts / 1 hour = 50 parts per hour
Factory B = 200 parts / 8 hours = 25 parts per hour
In this example the first factory has double the productivity of the second factory.
Usually productivity measurements will be taken and used as a gauge for future activity. As in the above example though it can also be used to quantify productivity levels from different areas during the same time period.