Production Rate
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 Definitions
Articles Of Interest
-
Vital Link: Manufacturing And Economic Recovery
Manufacturing output is one of the clearest signs that an economy is recovering from a recession. -
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. -
Earnings Guidance: Can It Accurately Predict The Future?
Explore the controversies surrounding companies commenting on their forward-looking expectations. -
Why The Consumer Price Index Is Controversial
Find out why economists are torn about how to calculate inflation. -
Predict Inflation With The Producer Price Index
Find out how the PPI can be used to gauge the overall health of the economy. -
Consumer Spending As A Market Indicator
What people buy and where they shop can provide valuable information about the economy. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Trading The Non-Farm Payroll Report
Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create. -
U.S. Vs. China: Battle To Be The Largest Economy In The World
America's lengthy title reign as "World's Largest Economy" is fast under threat by China's surging economic growth. Find out what the global rankings are forecasted to be for these economic powerhouses. ... -
Economic Indicators That Affect The U.S. Stock Market
Macroeconomic factors like GDP, Inflation, and Retail Sales affect the value of your portfolio. Understanding these economic indicators is vital for every investor in the marketplace.
Free Annual Reports