Topic Seven, Part 2 - Productivity Flashcards
What is productivity?
The level of output compared to input
What is the formula for productivity?
output / input
What is the formula for the productivity of machines using sales revenue?
Sales revenue / number of value of machines
How can the philosophy of Kaizen help improve productivity?
The strive for continuous improvement
What is the formula for the productivity of employees using sales revenue?
Sales revenue / wage bill or number of employees
What is the formula for the productivity of machines and employees?
Output / number of machines and employees
What is the formula for the productivity of employees?
Goods produced / number of employees
How is productivity a benefit to employees?
decreased costs mean better job security
How is productivity a benefit to customers?
Shorter delivery time
How is productivity a benefit to shareholders?
Increase in investment
How is productivity a benefit to creditors?
Business can pay off debts faster
How can productivity be improved?
- Increase output with same input
- Set realistic targets
- Training the workforce
