Unit 4.2- analysing operational performance

Question 1

What is the labour productivity?

Answer 1

Labour productivity = Output (per period)

Number of employees (per period)

Question 2

What is problematic about measuring productivity this way?

Answer 2

• Which workers should be counted?

- How should part time workers and the long term sick be treated?

Question 3

What is capacity utilisation?

Answer 3

Capacity utilisation is about the use that a business makes from its resources.

Question 4

What is the equation for Capacity utilisation =

Answer 4

Current (existing) output x 100

Maximum possible output

Question 5

When making operational decisions what will the managers consider?

Answer 5

• costs,
• the profits
• the risks
• the impact on competitiveness
• the effect on other functions and stakeholders.

Question 6

How would developments in technology affect operational perform

Answer 6

enabled operations managers to track data more effectively and hopefully make better decisions.