Productivity Task Quality Revision Sheet Learning Objectives To

Productivity

Task Quality Revision Sheet

Learning Objectives To understand that improving productivity will lead to lower costs

What is productivity? Dictionary definition: ‘The amount of output per unit of input (labor, equipment, and capital). ’ So: The output per worker…

How is productivity measured? Productivity = Total Output Number of Workers

Example… Assume a team of 100 workers can produce 500 engines each year Productivity of the team is 5 engines per worker per year (500 engines ÷ 100 workers) The next year the same 500 workers produce 600 engines, therefore the productivity of the team rises to 6 engines per worker

Example for you… A team of 50 workers make 5000 cakes a year ◦ 100 cakes per worker per year A team of 3 workers make 100 cups a week ◦ 33. 34 cups per worker per week A team of 100 workers make 7500 t shirts a month ◦ 75 t shirts per worker per month

Competitiveness Advantage over a rival that will allow you to gain customers

How do Businesses raise productivity to increase competitiveness? Training Better Equipment More effective work practices Higher productivity = Lower costs = competitive advantage

Other ways of reducing cost to make you more competitive Improved purchasing Relocation Better Design Cutting overhead costs

Homework Stock sheet Due Thursday

Task P 53 Over to you…