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Definition of Productivity Productivity: Definition Productivity is the relationship between the outputs generated from a system and the inputs that are used to create those outputs. Mathematically O P = I Systems Concept Mathematically, How Can We Increase Productivity? Productivity Improvement Measuring Productivity Static: P=O/I in a given period of time (t). Useful for benchmarking purposes. Dynamic: p(1)=O(1)/I(1); p(2)=O(2)/I(2); then p(2)/p(1) yields a dimensionless index that reflects change in productivity between periods. ((p(2)-p(1))/p(1))*100 yields