Measuring and Improving Operational Performance in Business

The video tutorial discusses how businesses can maintain competitiveness by improving productivity and efficiency through operational data. It covers labor productivity, unit costs, and capacity utilization, highlighting the challenges and considerations in measuring these metrics. The tutorial emphasizes the importance of using these measures as internal guides rather than direct comparisons with competitors.

What is the primary goal of using statistical operational data in businesses?

• To reduce the quality of products

• To increase the number of employees

• To increase the prices of goods

• To maintain competitiveness in the market

Which factor is NOT mentioned as influencing labor productivity?

• Quality of working conditions

• Organizational setup

• Motivation levels of workers

• Number of competitors

Why can comparing productivity measures across companies be challenging?

• Different companies have the same setups

• All companies produce identical goods

• Different goods and services are produced

• Prices are consistent across all companies

What are the two main components of total cost in a business?

• Production cost and distribution cost

• Marketing cost and sales cost

• Fixed cost and variable cost

• Labor cost and material cost

How does efficient performance affect fixed costs per unit?

• Doubles fixed costs per unit

• Has no effect on fixed costs per unit

• Decreases fixed costs per unit

• Increases fixed costs per unit

What does capacity utilization measure in a business?

• The number of employees

• The maximum possible output

• The percentage of capacity being used

• The total revenue generated

What is a potential risk of operating at full capacity?

• Inability to meet unexpected demand

• Increased spare capacity

• Lower fixed costs per unit

• Decreased resource utilization