Question
Quality and profitability relationship.
Answer :
Word Count : 371
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Skip in 10
Productivity is the relationship between the amount of outputs and amount of inputs needed to produce a product. In other words, management measures productivity by comparing the amount of a product produced to the amount of raw materials and manpower needed to produce a product. If less raw materials and manpower are used to produce more of a product, then productivity is considered high.
Let's take a look at the Chicken Valley Poultry Company, a large producer of chicken products. Chicken Valley Poultry Company produces chicken nuggets in its manufacturing plant. In order for management to determine whether the plant has high productivity rates, management will look at a few things:
- The amount of raw materials, like chicken, eggs, bread crumbs and food additives, used
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