Chapter 5 - Production Improving Productivity

REVIEW  What are the 6 factors of productivity ?  Natural resources, raw materials, labour, capital, information, management  What are the 4 steps of the production process ?  Purchasing, processing, quality control, grading

Productivity Comparison of the resources used with the products or services that result.  If fewer resources are used per units produced, productivity increases.  Increase in productivity results in an increase in profit (less cost/unit)  Adding machines, employees or inventory will increase costs so won’t necessarily increase productivity (even if you make more)

4 Improving Productivity  maintain quality while increasing speed  increase quality while maintaining speed  increase both quality and speed at the same time

I Love Lucy  Chocolate Scene Chocolate Scene  Will speeding up the belt improve productivity?

Example  If employee A in a local coffee shop serves 100 people per hour and employee B serves only 50 people per hour, employee A could be considered twice as productive as employee B. Stretch Your Thinking  Is it possible that employee B is actually as productive as employee A? Explain.

7 How to Improve Productivity? Training Initial training, ongoing training, retraining, specialized training Capital Investment new computers, machinery, buildings, and facilities

8 How to Improve Productivity? Investment in Technology Up-to-date technology, robotics, automation New Inventory Systems Just-in-time (JIT) - inventory systems allow businesses to track all supplies to deliver goods on time.

Increasing Productivity through Positivity – Ted Talk

While Watching……  While watching, write down some notes about what stood out to you. Afterwards, you are going to put these notes into a complete paragraph to be handed tomorrow.