Productivity
- Created by: Izzie
- Created on: 16-05-17 12:09
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- Productivity
- Output in relation to units of input in a given time period
- Factors influencing MACHINERY productivity...
- Lack of supplies
- Support & maintenance
- Reliability & quality of machine
- How long it operate for (can run day & night)
- People (LABOUR)
- Labour productivity measures output per worker
- Factors influencing productivity...
- Motivation
- Complexity of the product
- Training & skills of the workforce
- Can be increased by...
- Training
- Increasing motivation
- New technology
- Better work practices
- Improve recruitment &selection
- Improving productivity
- Operational efficiency involves maximising output achieved from given inputs including machinery, materials & people
- Increase capacity utilisation
- Increase labour productivity
- lowers labour cost per unit & unit cost, enables firm to gain larger profit margin OR lower its prices
- Using technology
- Choose optimal resource mix, labour v. capital intensive
- Potential issues with encouraging increased productivity
- May negatively impact quality & customer satisfaction
- Employees may be more focused on meeting targets so standards may not be met
- Damages reputation, increase waste affecting unit cost
- Employees may feel exploited
- Work harder for same pay, business benefits - not employees
- No space for errors to be rectified
- May negatively impact quality & customer satisfaction
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