PYG is a private limited company based in country A. PYG makes metal cans for food products using flow production. The Operations Director has been looking at the operations data in the Table. Last year PYG found it difficult to replace the 15 production workers who left the company. Most of PYG’s output is exported. The Operations Director thinks there could be more advantages than disadvantages to relocating production to another country.
- PYG TABLE.JPG (8.65 KiB) Viewed 325 times
15 Identify and explain two reasons why calculating output per employee is important for PYG. [4]
Possible KN Points:
• Has an impacts on unit cost
• Measures labour efficiency
• Make comparisons with previous years/other businesses
• Indicate if able to meet orders/staffing levels correct
• Help calculate wages
• Useful in employee appraisal