2. Cost-effective operations and
competitiveness:
Keeping productivity up and costs down to
ensure low costs and allow for competitive
prices
3.
4. 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
Staff Output Productivity
Dacia 27,000 110,000 ?
Nissan 2,750 270,000 ?
What does this tell us about these companies?
The UK pays much higher wages, so how is it that they are more
productive?
5.
6.
7.
8.
9. BUILDING A BRICK WALL
Materials:
Other costs directly involved:
Labour:
Fixed costs:
10. 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?
11. 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.
12.
13. The more you buy the cheaper it gets.....
In your books try and explain how this
happens.
