Any production method relies on efficiency – this can be viewed
in different ways: Productivity – a measurement of output per
unit of the factor used (labour, capital or land) Productivity =
------------------- Units of Factor Technical Efficiency –
output produced using the fewest possible inputs Productive
Efficiency – output produced at the lowest possible cost
Production decisions involve deciding methods for new production
runs and analysis of existing methods. Decisions may include:
Substitute machinery for labour? Use of new technology?
Organisation of the production layout? Change of production
method? Production Methods Copyright: Photolibrary Group Whilst
all output can be classed as production, different production
methods may be more appropriate for different products or
services. Agriculture tends to be very land intensive –
efficiency could be measured in terms of output per acre/hectare
Production Methods Copyright: iStock.com As technology and
analysis of production methodology has improved, m