4.3b Labour Productivity Flashcards Preview

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Flashcards in 4.3b Labour Productivity Deck (11):
1

Labour productivity definition

Measure of the output per worker in a given time period

2

Labour productivity formula

Labour productivity = output per period ÷ number of employees at work

3

Ways to improve labour productivity

- Measure performance and set targets
- Improved working practices
- Streamline production processes

4

Advantages of high labour productivity and efficiency

- Maximise production
- Reduces unit costs
- Improved quality

5

Efficiency can be improved by

- Training of the workforce
- Investment in capital equipment
- Renewable or recyclable resources

6

Economies of scale definition

Advantages that an organisation gains due to an increase in size

7

Examples of economies

- Purchasing economies
- Technical economies
- Marketing economies

8

Lean production definition

An approach to management that focuses on cutting out waste, whilst ensuring quality

9

What is the aim of just-in-time production?

To ensure that inputs into the production process only arrive when they are needed

10

Advantages of JIT production

- Lower stock holding = reduction in storage space = saves rent
- Less working capital is tied up in stock
- Less likelihood of stock perishing

11

Disadvantages of JIT production

- Little room for mistakes
- Production is highly reliant on suppliers
- Fewer opportunities for bulk buying

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