State two quantitative measures a business could use to monitor a change.

The level of output achieved and the productivity of the workforce.

How is employee productivity measured?

Employee productivity is total output divided by the number of employees over the same period.

A factory produces 24,000 units in a month using 40 production employees. Calculate the output per employee.

Output per employee is 24,000 ÷ 40 = 600 units.

After a change, monthly output rises from 12,000 units to 13,500 units with the same workforce. Calculate the percentage increase in output.

The increase is 1,500 ÷ 12,000 × 100 = 12.5%.

What is benchmarking?

Benchmarking is comparing a business's own performance against that of the best performers in or beyond its industry, in order to measure the size of the gap.

OCR A-Level Business (H436) H436

Business Activity

Topic overview Buying, selling and adding value Spotting an opportunity and starting a business Entrepreneurs and intrapreneurs Risk, reward and uncertainty Business objectives: profit, growth, survival and sustainability SMART objectives and the usefulness of objectives Primary, secondary and tertiary sectors Sole traders and partnerships Private and public limited companies Liability, legal status and choosing an ownership structure Social enterprises and not-for-profit organisations The stakeholders of a business What each stakeholder wants from a business Conflicting stakeholder objectives Measuring the size of a business Organic growth and franchising Mergers, takeovers, integration and diversification Factors influencing the scale of operations Economies and diseconomies of scale Market power and overtrading Stages of the customer journey Customer experience and how it is measured

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People

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Topic overview The purpose of operations and the transformation process Added value and how it is calculated Ways of adding value: convenience, branding, design and facilities Sustainability as a way of adding value Automation, robotics and 3D printing in production AI, cloud services and digital technology in production Efficiency, effectiveness and productivity Measuring and improving productivity Production quality: purpose and standards Quality control and quality assurance Capacity utilisation and how it is calculated Managing capacity: increasing output, cutting capacity and outsourcing Types of inventory and the purpose of inventory control Inventory control charts, re-order levels and lead time Just In Time and inventory management systems The stages of supply chain management Logistics: procurement, transport and reliability of supply Key performance indicators in operations

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Strategy, Risk and Managing Change

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Strategy, Risk and Managing Change

Monitoring change with quantitative and qualitative data

1 thing to know
Component 03

Overview

Recall questions on why change is monitored after implementation, the quantitative and qualitative measures used, and calculating productivity before and after.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Why does a business monitor a change after it has been implemented?

Questions from this subtopic

Each one with the model answer underneath.

1
Why does a business monitor a change after it has been implemented?
Model answer
To establish whether the change is delivering the intended benefit while there is still time to adjust or reverse it.
2
State two quantitative measures a business could use to monitor a change.
Model answer
The level of output achieved and the productivity of the workforce.
3
How is employee productivity measured?
Model answer
Employee productivity is total output divided by the number of employees over the same period.
4
A factory produces 24,000 units in a month using 40 production employees. Calculate the output per employee.
Model answer
Output per employee is 24,000 ÷ 40 = 600 units.
5
After a change, monthly output rises from 12,000 units to 13,500 units with the same workforce. Calculate the percentage increase in output.
Model answer
The increase is 1,500 ÷ 12,000 × 100 = 12.5%.
6
What is benchmarking?
Model answer
Benchmarking is comparing a business's own performance against that of the best performers in or beyond its industry, in order to measure the size of the gap.

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