UNIT 4 OPERATINOS - ANALYSING OPERATIONAL PERFORMANCE Flashcards
WHY IS operations data significan to a bs overall
Hint picture
gives clear picture of a firms productivity and efficiency
what are the 4 main areas of operaitonal data
capacity
capacity utilisation
labour productivity
unit costs
bs are likely to set targes realting to each
of the operations data
targets est regarding operaitonal data will be
smart
and sued to identify trends and judge perfomance
what is capapcity
total max amount a bs can rpdocue in a given time period if its working flat out
what is capapcity utilisation
shows actual output of a bs and in a given time period as a % of the maximum capacity
how do we calculate capacity utilistion
actual output in time period /maximum possible output per time period
x 100
what is labour productivity
measures output per worker in a given time period
which two dpt managers are interested in labour productivity
operational and hr managers
how do we calculate labour productivity
output per time period /
number of employees
what would be the result of a labour productivity question
x units per worker
what is a unit cost
cost of producing one unit of a good or service
how do we work out unit/average unit costs
total costs/units of ouptut
why do firms want to lower unit costs
can improve competitivity
cosg of production increases when a bs makes
more
costs of production icnrease when a busines makes more , so its ipmortant for a bs to be productive enough as
keeps cost to a minimum
why do we analyse operational data
hint looking over prevous year , goals , directio
when looking over previous years can analyse trends
from this put in goals
this is useful for leadership and workforce who can strive towards this
creates a senes of direction
work better
fo better
how can we use operational data in terms pricing
tell bs estimation of ost of producing a unit whihc can aid pricing descisions
what is production
volume of ouotu a firm produces in a specific time period
what is productivity
hourly rate of ouptu per each unit
if same level of ouput can be achieved with fewer employees what wil happen to productiivyt
rise
