SAMPLE RESOURCE. Topic: Productivity

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Wendy Anis Barker
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1 Topic: Productivity Q1 I ll Chairish It Always produce top of the range armchairs, in a range of quality fabrics. All chairs are hand made to order, which makes the firm s manufacturing process expensive. In an attempt to increase sales and profit, the business has started selling its armchairs through an upmarket independent furniture store and, as a result, needs to increase the total amount of chairs or output that it produces. The business has provided the following estimated cost data in the table below. Total Output (chairs/units) Total Costs ( s) Cost to produce one chair/unit ( s) 10 8, ,000 (i) 30 12,000 (ii) 40 14,000 (iii) Activity: Complete the table with the three missing figures, stating in each case whether the cost to produce one chair/unit increases or decreases as total output rises Your workings:

2 Topic: Productivity Q2 Soopa Meerkato! is an independent supermarket which, in order to compete with national chains, is always searching for ways to become more efficient. Currently, 500 trays of inventory are delivered each morning and are put out onto its shelves by 10 members of staff. In an attempt to increase the productivity of its workforce, the firm has introduced a new training programme. In order to measure the effectiveness of this training on stock replenishment, the following data has been collected: Before training After training Total number of trays put out each morning Number of employees Activity: Calculate the percentage increase in productivity levels per employee before and after the training Your workings:

3 Topic: Productivity Q3 RUSTic Cookers produce top of the range cast iron cookers, which sell for over 3,000 each. This year, in an attempt to reduce costs and minimise waste, the business has invested in machinery to melt down scrap metal, to re-use in the production process. As a result, the cost of producing a cooker this year has reduced by 10% compared to the production cost one year ago. Cost of producing one cooker/unit Activity: Using the above information, calculate: a) the cost of producing a cooker this year b) the average cost of producing a cooker over the 3 years Your workings: Time (years) 2 years ago 1 year ago 1,510 1,520 1,530 1,540 1,550 1,560 Cost ( s)

4 Topic: Productivity Q4 Look At Me! manufacture luxury sports cars at its factory in Sussex. Each car is hand built, using traditional methods, and can be personalised to customer requirements. Having always had a long waiting list for its cars, the business is now considering introducing new technology to speed up the production process. Currently, Look At Me! can make a maximum of 20 cars per week, but predicts this will need to increase by 35% per week to meet growing demand. The following data regarding output has been produced: Number of cars Activity: Using the above information, calculate: a) the cost of producing a cooker this year Actual and maximum level of output Week 1 Week 2 Week 3 Week 4 Actual level of output Week number Maximum possible level of output b) the average cost of producing a cooker over the 3 years Calculate: a) the number of cars the business will need to make each week to meet growing demand b) the average weekly number of cars the business actually manufactures over the 4-week period c) the total number of cars actually produced over a 4-week period as a percentage of the maximum possible number of cars that could be manufactured over these 4 weeks Your workings:

5 Topic: Productivity - Answers Q1 I ll Chairish It Always produce top of the range armchairs, in a range of quality fabrics. All chairs are hand made to order, which makes the firm s manufacturing process expensive. In an attempt to increase sales and profit, the business has started selling its armchairs through an upmarket independent furniture store and, as a result, needs to increase the total amount of chairs or output that it produces. The business has provided the following estimated cost data in the table below. Total Output (chairs/units) Total Costs ( s) Cost to produce one chair/unit ( s) 10 8, ,000 (i) 30 12,000 (ii) 40 14,000 (iii) Activity: Complete the table with the three missing figures, stating in each case whether the cost to produce one chair/unit increases or decreases as total output rises Formula: unit cost = total costs total output (i) 10,000/20 units = 500 per chair/unit, a decrease (ii) 12,000/30 units = 400 per chair/unit, a decrease (iii) 14,000/40 units = 350 per chair/unit, a decrease

6 Topic: Productivity - Answers Q2 Soopa Meerkato! is an independent supermarket which, in order to compete with national chains, is always searching for ways to become more efficient. Currently, 500 trays of inventory are delivered each morning and are put out onto its shelves by 10 members of staff. In an attempt to increase the productivity of its workforce, the firm has introduced a new training programme. In order to measure the effectiveness of this training on stock replenishment, the following data has been collected: Before training After training Total number of trays put out each morning Number of employees Activity: Calculate the percentage increase in productivity levels per employee before and after the training Before training = total number of trays put out each morning = 500 After training = 605 number of employees 10 = 50 trays per employee 10 = 60.5 trays per employee Percentage change = new - old x 100 = ( ) x 100 = 10.5 x 100 original = 21% increase

7 Topic: Productivity - Answers Q3 RUSTic Cookers produce top of the range cast iron cookers, which sell for over 3,000 each. This year, in an attempt to reduce costs and minimise waste, the business has invested in machinery to melt down scrap metal, to re-use in the production process. As a result, the cost of producing a cooker this year has reduced by 10% compared to the production cost one year ago. Cost of producing one cooker/unit Time (years) 2 years ago 1 year ago Activity: Using the above information, calculate: a) the cost of producing a cooker this year b) the average cost of producing a cooker over the 3 years a) Cost of producing a cooker this year = 1,560 x 0.9 1,510 1,520 1,530 1,540 1,550 1,560 Cost ( s) = 1,404 per cooker/unit b) Average cost of producing a cooker over the 3 years = total cost number of years = 1, , ,404 = 4, = 1,498

8 Topic: Productivity - Answers Q4 Look At Me! manufacture luxury sports cars at its factory in Sussex. Each car is hand built, using traditional methods, and can be personalised to customer requirements. Having always had a long waiting list for its cars, the business is now considering introducing new technology to speed up the production process. Currently, Look At Me! can make a maximum of 20 cars per week, but predicts this will need to increase by 35% per week to meet growing demand. The following data regarding output has been produced: Activity: Using the above information, calculate: a) the cost of producing a cooker this year b) the average cost of producing a cooker over the 3 years Calculate: a) the number of cars the business will need to make each week to meet growing demand b) the average weekly number of cars the business actually manufactures over the 4-week period c) the total number of cars actually produced over a 4-week period as a percentage of the maximum possible number of cars that could be manufactured over these 4 weeks a) number of cars the business will need to make each week to meet growing demand = 20 x 1.35 = 27 cars per week b) the average weekly number of cars the business actually manufactures over the 4-week period = = 76 cars 4 4 weeks = 19 cars per week c) actual level of output over the 4-week period = = 76 cars maximum possible level of output over the 4-week period = = 80 cars the total number of cars actually produced over a 4-week period as a percentage of the maximum possible number of cars that could be manufactured over these 4 weeks: = x 100 = 95% Number of cars Actual and maximum level of output Week 1 Week 2 Week 3 Week 4 Actual level of output Week number Maximum possible level of output

RESOURCE SAMPLE. AQA A Level Business. Unit Assessment. 3.4 Decision making to improve operational performance. This Unit Assessment covers:

RESOURCE SAMPLE. AQA A Level Business. Unit Assessment. 3.4 Decision making to improve operational performance. This Unit Assessment covers: UNIT ASSESSMENT AQA A Level Business Unit Assessment This Unit Assessment covers: 3.4 Decision making to improve operational performance h 1 hour h The maximum mark for this unit assessment is 50 Name