Productivity

PRODUCTIVITY – A measure of output relative to input. Productivity (or efficiency) is improved by increasing output for a given input, or decreasing input for a given output. If the input is specifically work hours, the term commonly used is labor productivity. See: LABOR PRODUCTIVITY.

LABOR PRODUCTIVITY – A measure of production output relative to labor input. In economics, industrial engineering, and earned value management, quantity/work hour measures are common (higher values reflect higher productivity or efficiency). In cost estimating, inverse measures such as work hours/quantity or unit hours are common (where lower values reflect higher productivity or efficiency). Regardless of the measure used, labor productivity (or efficiency) is improved by increasing production for a given work hour or decreasing work hours for a given production.

Source: AACE International Recommended Practice No. 10S-90 - Cost Engineering Terminology