2.3 productive efficiency Flashcards
(18 cards)
productivity
output per unit of input in a given time period
factors influencing productivity
- skill of workforce
- organisation of workforce
- efficiency of technology used
increasing productivity
- training workers
- more advanced capital machinery
- larger quantities of capital stock
process innovation
new production techniques that lower average costs
labour productivity
output per hour
capital productivity
output per unit of capital (finance available)
labour intensive production
production that requires more staff, often work difficult for machines to complete
capital intensive production
production that requires more investment, usually when technology needs purchasing
capacity utilisation
extent to which assets within the business are used
optimum level of capacity utilisation
80%
quality control
checking quality standards at end of production line for any signs of defects or poor quality
quality assurance
quality being checked along the production line and designing the process to do so
total quality management
importance of meeting customer requirements, aim to continuously improve all parts of business
kaizen
small continuous improvements, finding better ways of organising design and production of products
employee participation
employees contribute ideas that improve efficiency, quality, and productivity
just in time
delivery schedules ensure that the minimum amount of stock is stored and is available as it is required, production is made only to order
lean production
strategies for minimising waste, lowering costs and saving time (umbrella term that covers JIT, kaizen, cell production)
