Anaylsing Operational Performance Flashcards
What is operational data
allows a business to measure the performance of the operations function
What does operational data include
- labour productivity
- unit costs
- capacity
- capacity utilisation
What is labour productivity
Measures output per worker, productive workers produce larger quantities of output per time period
How to calculate labour productivity
Total output/number of employees
What are unit costs
Show you the average cost of producing a single unit of output
How to calculate unit cost
Total costs/ output
Factors influencing unit costs
- number of units produced
- labour productivity
- suppliers
- material usage
- complexity of product
What is capacity
Refers to the maximum amount of output achievable if all rescources are used
How can capacity be increased
Acquiring more rescources e.g bigger premises, more machinery
How can capacity be reduced
Downsizing rescources, laying off workers ,smaller premises, less machinery
What is capacity utilisation
Measures the existing output over a given period as a percentage of the maximum output
How to calculate capacity utilisation
Actual output/maximum output x 100
