Exploring the essentials of business productivity and efficiency, this content delves into strategies like lean production and Just-In-Time (JIT) methodology. It discusses the impact of technology on operational efficiency, the benefits and challenges of JIT, and the choice between labor-intensive and capital-intensive production methods.
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Productivity measures the amount of output generated per unit of input
Sustainable Practices
Companies can reduce waste and improve productivity by adopting sustainable practices
Employee Training
Investing in employee training can lead to improved skills and productivity
Capital Investment in Advanced Machinery
Companies can increase efficiency by investing in advanced machinery
Utilizing resources to their fullest potential is essential for improving productivity
Efficiency gauges a company's ability to maximize outputs while minimizing unnecessary inputs
Refining Management Techniques
Companies can improve efficiency by refining management techniques and encouraging calculated risk-taking
Lean Production
Lean production, including the Just-In-Time methodology, can reduce waste and increase efficiency
Technological Innovation
Utilizing technology can enhance efficiency through automation, communication, and time management
Improving efficiency can lead to benefits such as increased productivity and employee engagement, but also presents challenges such as reliance on suppliers and potential loss of economies of scale
Labor-intensive production relies heavily on human labor and is suitable for products or services that require customization or craftsmanship
Capital-intensive production relies on machinery and is preferred for large-scale production where consistency and speed are important
The nature of the product, required skill level, company size, and financial resources all play a role in determining the most suitable production method
00
In business, ______ is calculated by the output produced for each unit of input, like output per labor hour.
productivity
01
______ refers to how well a company maximizes outputs while reducing unnecessary inputs.
Efficiency
02
If a worker produces 350 units instead of the standard 300, their efficiency rate would be ______%.
116.67
