productivity is concerned with prod

productivity is concerned with producing output efficiently, and it specifically addresses the relationship of output and the inputs used to produce the output.
Usually, different combinations or mixes of inputs can be used to produce a given level of output.
Total productive efficiency is the point at which two conditions are satisfied 1.for any mix of inputs that will produce a given output, no more of any input is used than necessary to produce the output and 2. given the mixes that satisfy the first condition, the least costly mix is chosen. The first condition is driven by technical relationships and, therefore, is referred to as technical efficiency.
Viewing activities as inputs, the first condition requires eliminating all non-value-added activities and performing value-added activities with the minimal quantities needed to produce the given output. The second condition is driven by relative input price relationships and, therefore, is referred to as input trade-off efficiency. Input prices determine the relative proportions of each input that should be used. Deviation form these fixed proportions creates input trade-off inefficiency.

Productivity improvement programs attempt to move toward a state of total productive efficiency. Technical improvement in productivity can be achieved by using less input to produce the same output or by producing more output using the same inputs or more output with relatively less inputs.
For example, in 1992, Lantech, a wrapping-machine producer, produced eight wrapping machines per day with 50 workers, an average of 0.16 machine per worker. By 1998, the output had increased to 14 machines per day using 20 workers-an average of 0.7 machine per worker. By 1992 Productivity standards, about 87.5 workers would have been needed to produce 14 machines. Thus, output increased, and fewer workers were needed.

Total productive efficiency is the point at which two conditions are satisfied:
1. for any mix of inputs to produce a given output, no more inputs are used than are necessary to produce that output
2. given the mixes that satisfy the first condition, the least costly mix is chosen