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GCSE Business · key term
Using resources with as little waste as possible to produce goods or services while maintaining the required quality.
Used by AQA and Edexcel
Paper 1
Revise: Efficiency in ProductionEfficiency means using these resources with as little waste as possible while maintaining the required quality. A business can become more efficient by producing the same output with fewer resources, or by producing more usable output from the same resources.
How well a business uses its resources to produce goods or provide services, avoiding wasted materials, time and money.
Specification 2.5.1 · Paper 2
Using resources effectively to minimise waste, such as completing work with less time or cost while maintaining quality.
Revise: Ways of Working and TechnologyTraining may initially reduce productive working time before the new system improves efficiency. A business therefore needs to compare the likely savings with the costs of introducing and maintaining the technology.
Do not assume JIT guarantees efficiency. Consider whether suppliers can deliver the right quantity and quality on time.
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