Analysing Overall Performance Flashcards
what data can be used to measure operational performance
productivity of labour and capital used in production
measures of quality
capacity utilisation
What does analysing productivity do
it allows stakeholders to measure the efficiency with which an organisation converts inputs into outputs
what do highly productive businesses do
use fewer inputs to produce a unit of output
What can high productivity lead to
lower unit costs
what can low unit costs provide
a considerable competitive advantage
what does productivity data ignore
costs
what may rising productivity be achieved alongside
increased costs of resources and the higher costs will offset the benefits of the productivity gains
How quality be measured
measuring customer loyalty through the number of repeat customers
measuring customer satisfaction rates through questionnaires or surveys
measuring specific elements of operational performance such as the number of faulty products or response times to customer queries
what is capacity
the maximum amount a business can produce using its existing resources
what does capacity utilisation measure
it measures existing output relative to the maximum figure
why is high capacity utilisation useful for businesses in competitive industries
it is a means of keeping unit costs low, enabling the business to maintain acceptable profit margins whilst selling at low prices
What is an example of a business with a high capacity utilisation
Easyjet carried 83,639,260 passengers and achieved a capacity utilisation figure of 93.6 per cent on its aircraft between August 2017 and July 2018
What are the weaknesses with capacity utilisation
it reveals nothing about the costs that a company is paying for its resources; it simply measures the efficiency with which they are used.
What are the common pieces of HR data
labour productivity absenteeism rates health and safety data labour cost per unit of production employee costs labour turnover and retention
What can businesses do to help declining performance?
businesses have previously transferred their operations to low-cost countries like Bangladesh
