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CMA Intermediate · Operations Management and Strategic Management · Productivity Management and Quality Management

A bakery in Pune produces 1,200 loaves using 150 labour hours. Which measure does 8 loaves per labour hour represent?

It is partial or single-factor labour productivity. Output of 1,200 loaves divided by 150 labour hours gives 8 loaves per hour, relating output to only one input, labour, rather than to all inputs combined as total factor productivity does.

  1. ATotal factor productivity
  2. BPartial (single-factor) productivity of labourCorrect
  3. CCapital productivity
  4. DMachine utilisation rate

Explanation

Output divided by one input (labour hours) gives 1,200/150 = 8 loaves per hour. This is a partial productivity measure because only labour is considered. Total factor productivity would need all inputs expressed in a common unit, usually money.

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