137 productivity

Question 1

what is meant by productivity

Answer 1

is the measurement of efficiency in which a business turns inputs into outputs

Question 2

labour productivity equation

Answer 2

labour productivity = output (per period)
—————————————————
number of employees (per period)
-‘output per worker’

Question 3

captial productivity equation

Answer 3

captial productivity = output
————————
captial employed
‘output per worker’

Question 4

how can productivity be increased

Answer 4

• technology
• lean prduction
• training
• workforce reorginisation

Question 5

evaluating methods of increasing productivity

Answer 5

-increase investment in capital equipment-> (+) speeds up tasks-more items can be made reduces error
(-) however- expensive/hard to use- slowing down prodcutvity and tech can break

-move to taller orginisational structure-> (+) more orginised and closely watched as theres high authority- stay on task
(-) not all employees will respond well to added supervision -less productive

Question 6

differnce between capacity and capacity utilisation

Answer 6

capacity is an amount that can be priduced eg.400 seats on a plane
capacity utilisation is how many seats on the plane are actually being used eg.270/400

Question 7

capacity utilisation equation

Answer 7

capacity utilisation = current output
———————— x 100
max output

Question 8

problems with spare capacity

Answer 8

If a business is under capacity, overtime not available, bonuses limited and threat of redundancy ->workers will be demotivated

busineses may be forced to make workers redundant- soredundancy payments will have to be made. also management time will need to be spent on reorganisation-> increasing costs to the business

Question 9

problems of working at full capacity

Answer 9

• lack of flexibility
• possible lack of quality
• pressure on staff
• more breakdown of machines/failures