Case Study: Measuring Productivity In Cadbury

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output, or to produce:

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

Martinez Company’s relevant range of Production is 7,500 to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

17. According to the traditional view of the production process, how does output per worker change when capital per worker increases?

B. Efficiency: A process characteristic indicating the degree to which the process produces the required output at minimum resource cost and ask “are we doing things right?

Productivity refers to what can be produced at a given time with the least resources and effort. Productivity can also be defined as the ratio that estimates ho properly an organization converts its resources into goods/services or financial results such as profit. Workplace settings can be perceived as the pressures, situations, stresses, aggressive, demographic, social, regulations and technological elements that affect the operations, survival, and growth of organizations.

After couple of days of trying to understand the relationship between these two concepts, Alex understood low productivity is caused by dependencies of each production line to one another and is slowed by the bottlenecks. In few words, the difficult part for the manager is to identify the bottleneck.

Through that conversation, Alex realized that “productivity is the act of bringing a company closer to its goal” ( 1992). Alex thought the company’s goal is to increase efficiencies but he later realized that every company’s goal, including his plant, is to make money or to be profitable and anything that comes closer to the goal is considered as productive.

Productivity is the cornerstone of any organizations profitability. This means that any organization can be deemed productive if all its moving parts are working

The productivity or added value of the unit is the ultimate output measure and this is a fair reflection of a employee's ability to gain results through people.

Sainsbury’s plc has been operating in the UK market since 1869. Annual report’09 suggests that the company is currently serving 18 million customers each week with strength of 150,000 staff. It floated itself in 1973 under London Stock Exchange in 1973 as the biggest floatation at the time.

(70 visitors x 1/3) x [60 minutes / (5 minutes + 1-2 minutes + 4 minutes)]

When reading the book The Goal written by Eliyahu Goldratt, there were many lessons that I learned in order to have a clear and concise understanding of a positive level of productivity in a company. To have a positive level of productivity there are may components that are taken into consideration. Understanding what it actually means to be productive and how to increase the level of productivity by knowing the actual goal of the company that is trying to be reached and the components that go into the process of being productive. There are many factors that contribute to the level of productivity and being able to identify these factors is the key ingredient to having a successful level of productivity.

The current method of apportioning production overheads based on direct labour hours can be described as a traditional approach to product costing. In a manufacturing company’s financial statements, each item produced must be allocated some of the production overheads to make the statements compliant. Sometimes the individual costs of these items can be calculated incorrectly based on overall production overhead and the system of allocating in place, however the overall financial statement can still be accurate. This traditional method of allocating the production

This study aims to evaluate the efficiency and productivity change of 39 electricity distribution companies in Iran over the period 2005–14. A nonparametric data envelopment analysis (DEA) model is used to estimate the relative technical efficiency and productivity change of these companies. In addition, the distribution of efficiency based on geographic classification, size, and the type of the company, city, or province, is assessed. A stability test is also conducted in order to verify the robustness of the proposed model. Results demonstrate that the average technical efficiency of companies increased during the years 2006–09 but decreased during 2010–14. Moreover, the low increase of productivity change is more due to low efficiency