OPERATIONAL MEASURES OF PERFORMANCE Flashcards
What is labour productivity & the formula to working it out
Higher productivity means lower costs per unit
Formula = Total output / number of workers
What is unit costs & formula
Total output / total costs
The average cost of producing a single unit. Falling costs means lower preices or higher profits
What are laboru costs per unit & formula
Employee costs / output
lower labour cost per unit indicates rising productivity
What is capcaity & formula
Formula = The total amount that can be produced in a period of time
Can potential supply meet potential demand
What is Capacity utilisation & formula
Acrual output / maximum output X 100
A measure of the percentage of potential output being achieved. 80 - 90% considered optimal
What are performance measures
Quality & Added Value
What is the formula / measurement of quality & interpretation
Interpretation: Imapcts on sales, brand image, costs, wastage, motivation
Measurement:
Returns
Complaints
Number of defects
