3.4.3 Increasing Efficiency and Productivity

What is the primary difference between productivity and efficiency?

• Productivity is about reducing waste, while efficiency is about output per worker.

• Productivity is measured as output per worker, while efficiency is about getting more output from a given amount of inputs.

• Efficiency is about increasing profits, while productivity is about reducing costs.

• Efficiency is measured as output per worker, while productivity is about getting more output from a given amount of inputs.

How is labour productivity calculated?

• Output per period / Number of employees

• Number of employees / Output per period

• Output per worker / Number of hours worked

• Number of hours worked / Output per worker

What happens to labour costs per unit when labour productivity increases?

• Labour costs per unit rise

• Labour costs per unit fall

• Labour costs per unit remain the same

• Labour costs per unit fluctuate

Which of the following is NOT a way to increase labour productivity?

• Improving worker motivation

• Training workers

• Increasing the speed at which workers can do their job

• Reducing the number of workers

What is a potential negative consequence of increasing productivity?

• Improved worker morale

• Increased job security

• More waste of raw materials

• Higher quality of products

What is lean production?

• An inefficient form of production

• A method that keeps waste to a minimum

• A method that increases costs

• A method that reduces the quality of products

What is the main aim of Just-In-Time (JIT) production?

• To increase the amount of stock held

• To reduce waste of materials and products

• To increase the time taken for delivery

• To produce goods in large batches

What is a key advantage of JIT production?

• Increased storage costs

• Improved cash flow

• Increased stock levels

• Decreased demand for products

What is a disadvantage of JIT production?

• Increased stock levels

• Decreased demand for products

• Suppliers have to be reliable

• Increased production strikes

What does time-based management aim to reduce?

• Production costs

• Wasted time in the production process

• Number of employees

• Quality of products