Productivity

Question 1

Labour productivity

Answer 1

Labour productivity = Output (per period) / Number of employees (per period)

Question 2

Capital productivity

Answer 2

Capital productivity = Output / Capital employed

Question 3

What is productivity

Answer 3

Productivity is a measurement of the efficiency with which a business turns production inputs into output. Labour productivity (output per worker) is the most common measure of productivity.

Question 4

Within manufacturing there are a number of ways in which productivity can be improved, these include:

Answer 4

technology
lean production
training
workforce reorganisation.

Question 5

Advantages to high productivity

Answer 5

increased economies of scale
increased competitiveness
spreading of fixed costs over higher output
lower unit costs
performance bonuses to workers (motivation).