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Labour productivity if l.p low= managers can identify the cause

Unit cost high

Cpacity too low too high

If capacity utilisation too high too low

Increasing efficiency and productivity

^ efficiently by using capacity efficienctly

Problems using full capacity

^efficiency by ^l. p

^eff by choosing optimal mix resources = min cost> max quality product & customer service> optimal resource mix > aim, combine best

^efficiency by adopting lean production