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Flashcards in Operational Performance Deck (8)
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1
Q

What does efficiency mean?

A

Controlling costs when making goods or services and a good use of time and energy

2
Q

How can you measure the efficiency of a business?

A

Labour productivity
Unit costs
Capacity
Capacity utilisation

3
Q

What does labour intensive mean?

A

When labour costs outweigh the capital costs of a business

4
Q

What does labour productivity mean?

A

The amount of output that is obtained from an employee

5
Q

How would you calculate labour productivity?

A

Labour productivity = output per period
————————
No. Of employees in that period

6
Q

What can affect high labour productivity?

A

Quality of machinery, resources etc for staff to use
Skills, motivation and ability of the workforce
The methods of production used
Reliability of raw materials and suppliers

7
Q

How can labour productivity be increased?

A

Increasing the number of hours worked
Investment in equipment and technology
Changing the way the work is carried out
Motivating employees

8
Q

How is unit costs defined?

A

The cost of producing one unit of output