COST-EFFECTIVE OPERATIONS

SPECIFICATION DETAILS Cost-effective operations and

competitiveness: Keeping productivity up and costs down

to ensure low costs and allow for competitive prices

CALCULATE THE PRODUCTIVITY

Staff Output Productivity

Dacia 27,000 110,000 ?

Nissan 2,750 270,000 ?

Dacia : bought by a Romanian car business called Renault in 1999.Nissan : A UK factory in Sunderland, UK.In your book, calculate the productivity of these two car companies

What does this tell us about these companies?The UK pays much higher wages, so how is it that they are more productive?

THE IMPORTANCE OF PRODUCTIVITY

NEW TECHNOLOGY AND MANUFACTURING

NEW TECHNOLOGY AND SERVICES

KEEPING COSTS DOWNBUILDING A BRICK WALL Materials: Other costs directly involved: Labour: Fixed costs:

BRICK WALL Gavin is a bricklayer. He lays 800 bricks in a

day and is paid £120 a day. His friend John is a builder but one of his many skills is laying bricks. Yet, for the same price of £120, John can only lay 400 bricks a day.

Calculate the labour costs per brick for each man

How would you improve productivity?

HOW THEY BECOME MORE PRODUCTIVE? Technology: Investments in up-to-

date machinery, or replace people with automated equipment.

Motivation: Encouraging workers to work more enthusiastically, therefore harder and faster but improving moral.

Smarter: Encouraging staff to work more effectively. For example, Toyota is said to receive more than 100,000 suggestions each year.

ECONOMIES OF SCALE The more you buy the cheaper it

gets..... In your books try and explain how this

happens.

ECONOMICS OF SCALE

GCSE A- Z A-Z GCSE Worksheets 22:

Competitiveness