Analysing operational performance

Labour productivity- what is it?

• measures output per employee and is a measure of how productive workforce is.

• productivity is a measure of output in relation to the input, in this case- the workers

labour productivity- calculation

output per time period / number of employees

unit costs- what is it?

• sometimes referred to as average cost

• takes into account total costs of a business and divides by level of output

unit costs- calculation

total costs of production / number of units of output produced = £x per unit

capacity utilisation- what is it?

• max amount a bus can produce over certain time given

• measures existing output as percentage of max output possible

capacity utilisation- calculation

( acc output in given time period / max possible output in given time period) X 100