How to Calculate an Increase in Production

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Increases in production occur in the manufacturing industry.
Increases in production occur in the manufacturing industry. (Image: Photos.com/AbleStock.com/Getty Images)

Calculating an increase in production is typically done using a percent change method. Otherwise, an increase in production is just a subtraction problem based on the production during a beginning period compared to an ending period. An increase in production shows that the demand for a product is up because the company needs to provide more units to its customers. This could also mean the firm created more efficient ways to increase the number of units it is capable of producing.

Add together the number of units you made over a beginning period. For example, assume you made 400 units last year.

Add together the number of units you made in the current period. In the example, assume you made 600 units this year.

Subtract the beginning units from the ending units to find your change in units. In the example, 600 minus 400 equals a change of 200 units.

Divide your change in units by the beginning production number. In the example, 200 divided by 400 units equals 0.5. Multiply that by 100 to calculate an increase in production of 50 percent.

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