Skip to content
MarkSchemeMarkScheme
Sign up — no card

9609 · 4.1.2

Efficiency, effectiveness, productivity and sustainability — practice questions

Practice and worked examples for 9609 Efficiency, effectiveness, productivity and sustainability. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

Factory A: 10,000 units, 50 workers. Factory B: 9,000 units, 30 workers. Which is more productive? Which might be more effective?

Show solution outline

Productivity A: 10,000 ÷ 50 = 200 units/worker Productivity B: 9,000 ÷ 30 = 300 units/worker → B more efficient/productive per worker.

Effectiveness: Unknown without sales data — if B's units don't sell (wrong spec), B is productive but ineffective. If A holds excess inventory, also inefficient at system level.

Sustainability: If B achieves productivity via overtime burnout or pollution, long-term not sustainable.

Worked example 2

EcoPack Ltd. produces recycled cardboard boxes. Before investing in new technology, the company produced 200,000 boxes per month with 25 employees. After investing $150,000 in new cutting machinery and staff training, output increased to 270,000 boxes per month with the same number of employees. Calculate the change in labour productivity and comment on the decision.

Show solution outline

Step 1: Calculate initial labour productivity.

  • Formula: Labour Productivity = Total Output / Number of Employees
  • Calculation: 200,000 boxes / 25 employees = 8,000 boxes per employee

Step 2: Calculate labour productivity after the investment.

  • Formula: Labour Productivity = Total Output / Number of Employees
  • Calculation: 270,000 boxes / 25 employees = 10,800 boxes per employee

Step 3: Calculate the percentage increase in productivity.

  • Formula: Percentage Change = ((New Value - Old Value) / Old Value) x 100
  • Calculation: ((10,800 - 8,000) / 8,000) x 100 = (2,800 / 8,000) x 100 = 35% increase

Commentary:

  • Efficiency/Productivity: The investment led to a significant 35% increase in labour productivity, which will likely lower the unit cost of each box.
  • Effectiveness: If the new machinery produces higher quality, more precise boxes, it could increase customer satisfaction, making the operation more effective. However, the high cost of the investment ($150,000) needs to be recouped through this increased efficiency and potential for higher sales.
  • Sustainability: The new machine may be more energy-efficient, reducing the company's environmental impact. The staff training is a positive social investment (People). The decision appears to improve efficiency and potentially effectiveness and sustainability, but the financial return on investment would need to be monitored.
Mark a 9609 question on this topicFull lessonOpen in course studio