 Cost-effective operations and
  competitiveness:
 Keeping productivity up and costs down to
  ensure low costs and allow for competitive
  prices
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?
BUILDING A BRICK WALL
 Materials:
 Other costs directly involved:
 Labour:
 Fixed costs:
 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?
 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.
 The  more you buy the cheaper it gets.....
 In your books try and explain how this
  happens.
 A-Z   GCSE Worksheets 22: Competitiveness

4 cost-effective operations

  • 2.
     Cost-effective operationsand competitiveness:  Keeping productivity up and costs down to ensure low costs and allow for competitive prices
  • 4.
    Dacia : boughtby 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?
  • 9.
    BUILDING A BRICKWALL  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.
  • 13.
     The more you buy the cheaper it gets.....  In your books try and explain how this happens.
  • 15.
     A-Z GCSE Worksheets 22: Competitiveness