4 - The Use Of Data In Operational Decision Making Flashcards
What Is Operational Data?
(3 Points)
~ Allows a business to measure the performance of the operations management function.
~ Performance can then be compared to quantifiable operational objectives.
~ Changes can then be made to key operational areas to improve the functions performance if necessary.
What Does Operational Data Include?
(4 Points)
~ Labour productivity.
~ Unit costs (Average costs).
~ Capacity.
~ Capacity utilisation.
What Is Labour Productivity?
Measures the output per worker.
What Is The Formula For Labour Productivity?
Total Output / Number Of Employees
What Is Labour Productivity Influenced By?
(3 Points)
~ Training and skills of the workforce.
~ Motivation.
~ Complexity of the product.
What Is Unit Cost?
The average cost of producing a single unit of output.
What Is The Formula For Unit Cost?
Total Cost / Output
What Are Factors Affecting Unit Cost?
(4 Points)
~ Number of units produced.
~ Labour productivity.
~ Suppliers.
~ Material usage.
What Is Capacity?
The maximum amount of output achievable if all resources are fully utilised.
What Can Happen To Capacity In The Long Run?
(2 Points)
~ Can be increased by acquiring more resources.
~ Be reduced by downsizing resources.
What Will A Business Aim To Match Capacity To?
Demand.
What Is Capacity Utilisation?
Is a measure of the percentage of potential output being achieved.
What Is The Formula For Capacity Utilisation?
Actual Output / Maximum Output x 100
What Is Operational Data Used To Measure?
Performance against predetermined targets.
