Production Rate

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.

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.

Investment dictionary. . 2012.

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