Production Rate

AAA

DEFINITION of 'Production Rate'

In manufacturing, the number of goods that can be produced during a given period of time. Alternatively, the amount of time it takes to produce one unit of a good.


In construction, the rate at which workers are expected to complete a certain segment, such as a road or building. The production rate will depend on the speed at which workers are expected to operate, generally categorized as slow, average or fast.




INVESTOPEDIA EXPLAINS 'Production Rate'

For manufacturing and construction, a higher production rate can lead to a decrease in quality. As machines or employees work to have more product pushed through the production line or more of a building completed, more mistakes are likely to happen. There is thus a point at which a decrease in quality could wind up costing a company more, even if less time is needed to push out a unit.

RELATED TERMS
  1. Manufacturing Production

    The creation and assembly of components and finished products ...
  2. Supply Management

    A broad term describing the various acts of identifying, acquiring ...
  3. Bottleneck

    A point of congestion in a system that occurs when workloads ...
  4. Assembly Line

    A production process that breaks the manufacture of a good into ...
  5. Six Sigma certification

    Six Sigma Certification is a process of verification of an individual's ...
  6. Lean Six Sigma

    Lean Six Sigma is a managerial approach that combines Six Sigma ...
Related Articles
  1. Fundamental Analysis

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  2. Investing

    Doing More With Less: The Sales-Per-Employee Ratio

    If used properly, this ratio can give you insight into a company's productivity and financial health.
  3. Economics

    Why is the Breadth Indicator useful for tracking the overall economy?

    See how analysts might use technical breadth indicators to judge the health of the economy as a whole, and learn why one tool is probably not enough.
  4. What does Scarcity Mean?
    Economics

    Scarcity

    Scarcity is the basic economic problem that arises because people have unlimited wants, but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources ...
  5. The law of supply and demand is one of the most basic principles in economics.
    Economics

    What is Supply & Demand?

    The law of supply and demand is one of the most basic principles in economics. In simplest terms, the law of supply and demand states that when an item is scarce, but many people want it, the ...
  6. How does Outsourcing Work?
    Economics

    How does Outsourcing Work?

    Outsourcing is the business practice of hiring people outside a company to perform services that traditionally were performed within the company, by the business’s own employees. Companies typically ...
  7. What Does Cyclical Unemployment Mean?
    Economics

    What Does Cyclical Unemployment Mean?

    Cyclical unemployment is the change in job availability due to upswings and downswings in the business cycle. When the economy is robust and booming, cyclical unemployment is at its lowest. When ...
  8. Economics

    Why does inflation increase with GDP growth?

    Examine the relationship between inflation and GDP, and why GDP growth leads to higher prices. Explore the effects of uncontrolled inflation and GDP growth.
  9. Economics

    How did World War II impact European GDP?

    Understand the effect of World War II on the European gross domestic product and what foreign and domestic factors influenced this change.
  10. What is GNP?
    Economics

    What's the GNP?

    Gross national product (GNP) is one of many metrics economists use to measure a country’s economic output. For any one year, GNP equals the market value of all the goods and services produced ...

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center