Lesson Plan
Course Title: Principles of Business, Marketing, and Finance
Session Title: Productivity
Performance Objective:
The student analyzes cost and profit relationships in finance.
Specific Objectives:
4 (7) (A) Explain the concept of productivity.
4 (7) (B) Analyze the impact of specialization and division of labor on productivity.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in
the elimination of one or more of the TEKS listed.
Interdisciplinary Correlations:
English:
§110.42. English I (c) The student is expected to:
(8)(B) read in such varied sources as diaries, journals, textbooks, maps, newspapers, letters, speeches,
memoranda, electronic texts, and other media;
(6)(A) expand vocabulary through wide reading, listening, and discussing; and,
(4)(F) compile written ideas and representations into reports, summaries, or other formats and draw conclusions.
Economics:
§118.2. Economics (c) The student is expected to:
(3)(B) Identify and evaluate examples of restrictions that the government places on the use of business and
individual property.
(15)(B) Evaluate government rules and regulations in the U.S. free enterprise system.
Instructor/Trainer
References:
1. http://www.econedlink.org/lessons/index.php?lesson=EM668&page=teacher
2. http://puzzlemaker.discoveryeducation.com/code/PuzzleSolution.asp?submit2=Solution
3. http://www.readwritethink.org/files/resources/printouts/KWL%20Chart.pdf
Instructional Aids:
1. Optional – Overhead, SmartBoard, Internet, ELMO (if available and where applicable)
Materials Needed:
1. Textbook
2. Internet
Copyright © Texas Education Agency, 2011. All rights reserved.
1
3. Periodicals
4. Poster board
Teacher Preparation:
Instructors should review content from websites as well as lesson plan addendums prior to class.
Learner Preparation:
Learners will review vocabulary terms the night before class and review the following website the night before
class: http://www.econedlink.org/lessons/index.php?lesson=668&page=student (Parts 1 and 2)
Lesson Plan
Vocabulary from EconEdLink:
Specialization
A situation in which people produce a narrower range of goods and services than they consume. Specialization
increases productivity; it also requires trade and increases interdependence.
Resources
The basic kinds of resources used to produce goods and services: land or natural resources, human resources
(including labor and entrepreneurship) and capital.
Productivity
The amount of output (goods and services) produced per unit of input (productive resources) used.
Productive Resources
Natural resources, human resources, capital resources and entrepreneurship used to make goods and services.
Production
The act, process or result of manufacturing or refining something.
Labor
The quantity and quality of human effort available to produce goods and services.
Innovation
A new idea or method.
Factors of Production
Productive resources: What is required to produce the goods and services that people want; natural resources,
human resources, capital goods and entrepreneurship.
Entrepreneur
One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a
profit. Often a risk-taker, inclined to see opportunity when others do not.
Division of Labor
An arrangement in which workers perform only one step or a few steps in a larger production process (as when
working on an assembly line).
Copyright © Texas Education Agency, 2011. All rights reserved.
2
Introduction (LSI Quadrant I):
See EcEdWeb Economics Lesson Description from “Henry Ford and the Model T: A Case Study in Productivity”
(except for Part 3)for introduction.
Outline
Outline (LSI Quadrant II):
Instructors can use the PowerPoint presentation, slides, handouts, and note pages to support and reinforce the
following outline.
MI
I.
Outline
Application – Guided Practice
A. Students visualize and
communicate the concept of
productivity.
B. Students explore the
meaning of productivity
through kinesthetic
measures.
II. Application – Independent
See Multiple
Intelligences
(MI) key
below.
Practice
A. Students demonstrate
comprehension of student
expectation by applying
information from guided
practice.
B. Students complete an oral,
informal assessment based
on their documented
research.
I.
Notes to Instructor
Application – Guided Practice
A. Instructor leads class in a discussion of
productivity through the following steps.
1. Distribute puzzle entitled Productivity.
2. Review the vocabulary words found in the
puzzle activity.
3. Complete a K-W-L chart regarding the
students’ understanding and wonderings
about productivity/specialization of labor.
4. View one or more short videos on the
assembly line using historical content
documented about the Ford Model T to
provide examples of productivity and
specialization of labor:
http://www.youtube.com/watch?v=S4KrIMZpwCY
http://www.history.com/topics/assembly-line/
(a set of 3 videos)
http://www.history.com/shows/america-the-story-ofus/videos/henry-ford-and-the-model-t#henry-fordand-the-model-t
http://videos.howstuffworks.com/hsw/23134economics-division-of-labor-video.htm
http://americanhistory.si.edu/onthemove/exhibition/e
xhibition_8_6.html
5.
Discuss what was clarified in the K-W-L
chart.
6. Small group activity: Ask students to
collaboratively give their best definition of
productivity AND specialization of labor.
Present definitions to the class.
B. Instructor allows students to explore content;
activities appeal to kinesthetic learners.
1. Distribute “Productivity – Guided Practice”
2. Students collaboratively complete Guided
Practice in small groups of various sizes.
a. Directions and materials are included
Copyright © Texas Education Agency, 2011. All rights reserved.
3
II.
Summary
I. Summary Review Questions
A. Students will answer review
questions.
Evaluation
I. Evaluation
A. Students create products
using specialization of
labor.
in the activity.
b. Tables and charts/graphs are
completed as a class to compare
results (SmartBoard, overhead, or
computer with projector may be
used).
3. Individual teams answer Questions
section and discuss rationale for
responses.
4. Teams share answers with the class;
instructor moderates discussion.
a. Optional: Use SmartBoard or ELMO
Application – Independent Practice
A. Instructor directs students to create flowcharts
of their production process.
1. Use either poster board or PowerPoint.
2. Create two flowcharts
a. Original process used during
guided practice.
b. Revised process that would create
improved results.
3. Document changes required and
provide rationale.
4. Cite improved results.
5. Optional: This activity can be
completed in small teams of 2 – 3 if
there is time or other resource
considerations.
6. Instructor leads students in a
discussion of the results (no answer
key since results will vary).
B. Instructor directs students to present results to
members of the class.
I. Summary Review Questions
A. Ask review questions found on page 6 (see
Summary).
I. Evaluation
A. Instructor directs students to complete
Assessment Activity at
Student version
http://www.econedlink.org/lessons/index.php?lesson=668&page=student
Teacher version
http://www.econedlink.org/lessons/index.php?lesson=EM668&page=teacher
a.
Students may work in small teams.
Copyright © Texas Education Agency, 2011. All rights reserved.
4
b.
c.
Extension/Enrichment
I. Extension/Enrichment
A. Students create charts to
reflect productivity results.
B. Students donate items to a
nursing home, daycare, or
homeless shelter.
C. Students study academic
topics associated with
productivity.
D. Students experience
specialization of labor
through a field trip.
E. Students employ financial
analysis calculations with
productivity.
I.
Rubric is available through website.
Use teacher version to obtain questions to
assess comprehension.
Extension/Enrichment
A. Students use software to create charts/graphs
reflecting results of independent activity.
B. Allow students to donate sandwiches and
bookmarks to a non-profit organization.
C. Identify and research productivity through
historical events, i.e., Industrial Revolution; and
mathematics, i.e., Algebra.
D. Organize a field trip to a local plant that
produces goods through assembly line
methods.
E. Relate the financial analysis calculations such
as breakeven to productivity results (how many
items must be sold in order to reach a gross
margin of “0”).
Copy and paste Multiple Intelligences Graphic in appropriate place in left column.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
IntraPersonal
InterPersonal
Naturalist
Existentialist
Application
Guided Practice (LSI Quadrant III):
I. Application – Guided Practice
A. Instructor leads class in a discussion of productivity through the following steps.
1. Distribute puzzle entitled Productivity.
2. Review the vocabulary words found in the puzzle activity.
3. Complete a K-W-L chart regarding the students’ understanding and wonderings about
productivity/specialization of labor.
4. View one or more short videos on the assembly line using historical content documented about the
Ford Model T to provide examples of productivity and specialization of labor:
http://www.youtube.com/watch?v=S4KrIMZpwCY
Copyright © Texas Education Agency, 2011. All rights reserved.
5
http://www.history.com/topics/assembly-line/ (a set of 3 videos)
http://www.history.com/shows/america-the-story-of-us/videos/henry-ford-and-the-model-t#henryford-and-the-model-t
http://videos.howstuffworks.com/hsw/23134-economics-division-of-labor-video.htm
5. Discuss what was clarified in the K-W-L chart.
6. Small group activity: Ask students to collaboratively give their best definition of productivity AND
specialization of labor. Present definitions to the class.
B. Instructor allows students to explore content; activities appeal to kinesthetic learners.
1. Distribute “Productivity – Guided Practice”.
2. Students collaboratively complete Guided Practice in small groups of various sizes.
a. Directions and materials are included in the activity.
b. Tables and charts/graphs are completed as a class to compare results (SmartBoard,
overhead, or computer with projector can be used).
3. Individual teams answer Questions section and discuss rationale for responses.
4. Teams share answers with the class; instructor moderates discussion.
a. Optional: Use SmartBoard or ELMO
Independent Practice (LSI Quadrant III):
I.
Application – Independent Practice
A. Instructor directs students to create flowcharts of their production process.
1. Use either poster board or PowerPoint.
2. Create two flowcharts
a. Original process used during guided practice.
b. Revised process that would create improved results.
3. Document changes required and provide rationale.
4. Cite improved results.
5. Optional: This activity can be completed in small teams of 2 – 3 if there is time or other
resource considerations.
6. Instructor leads students in a discussion of the results (no answer key since results will vary).
B. Instructor directs students to present results to members of the class.
Summary
Review (LSI Quadrants I and IV):
•
•
Question: Define productivity.
Answer: The amount of output (goods and services) produced per unit of input (productive resources)
used.
•
•
Question: Describe how specialization of labor affected industries?
Answer: Specialization of labor increased product output due to employees trained to do specific tasks
for products that are and produce a narrow range of goods and services.
Copyright © Texas Education Agency, 2011. All rights reserved.
6
•
•
Question: What is the name of the innovative entrepreneur that first introduced the assembly line and
revolutionized the automobile industry?
Answer: Mr. Henry Ford.
•
•
Question: What actions can improve productivity?
Answer: Answers will vary. Responses may include: Track and evaluate results/trends; eliminate
wasted use of resources; increase efficiency.
•
•
Question: How does productivity affect the income statement?
Answer: Productivity is tied to product cost. Effective control of product cost increases gross margin
(revenue less cost of sales or cost of merchandise sold).
Evaluation
Informal Assessment (LSI Quadrant III):
Evaluate answers to independent practice.
 Address issues raised in independent practice.
Formal Assessment (LSI Quadrant III, IV):
I.
Evaluation
A. Instructor directs students to complete Assessment Activity at:
Student version http://www.econedlink.org/lessons/index.php?lesson=668&page=student
Teacher version http://www.econedlink.org/lessons/index.php?lesson=EM668&page=teacher
a.
b.
c.
Students may work in small teams.
Rubric is available through website.
Use teacher version to obtain questions to assess comprehension.
Extension/Enrichment (LSI Quadrant IV):
I.
Extension/Enrichment
A. Students use software to create charts/graphs reflecting results of independent activity.
B. Allow students to donate sandwiches and bookmarks to a non-profit organization.
C. Identify and research productivity through historical events, i.e., Industrial Revolution; and
mathematics, i.e., Algebra.
D. Organize a field trip to a local plant that produces goods through assembly line methods.
E. Relate the financial analysis calculations such as breakeven to productivity results (how many items
must be sold in order to reach a gross margin of “0”).
UNT in partnership with TEA, Copyright © 2010. All rights reserved.
7
Copyright © Texas Education Agency, 2011. All rights reserved.
7
Productivity
Guided Practice
Goal
Experience productivity and specialization of labor through a kinesthetic activity.
Activity
Assemble and package peanut butter and jelly sandwiches. Teacher may use
other sandwich choices as deemed appropriate.
Method
Distribute resources to students in groups of varying sizes (2 students, 4
students, and 6 students)
Resources
Each group receives all of the items below.
Loaf of bread
Disposable gloves
Jar of peanut butter
Small, disposable bowls
Jar of jelly
Sandwich bags
Plastic spoons and knives
Process:
1. Record the cost of all resources as a class. Obtain a measurement
conversion chart and scale to estimate the amount of peanut butter and jelly
used per sandwich. Use a calculator to determine cost.
INPUT
COST
Bread
Loaf: $
Peanut butter
Jar: $
QTY USED
PER
SANDWICH
EST COST
PER
SANDWICH
NOTES
Establish a consistent amount of peanut
butter to use per sandwich (TSP or
TBSP) and estimate cost per sandwich.
Jelly
Jar: $
Establish a consistent amount of jelly to
use per sandwich (TSP or TBSP) and
estimate cost.
Plastic spoons
and knives
Disposable
gloves
Disposable
bowls
Sandwich bags
or baggies
Box: $
Box: $
Set: $
Box: $
Copyright © Texas Education Agency, 2011. All rights reserved.
8
2. Determine cost per sandwich (include the cost of one baggie per sandwich).
3. Give each group three minutes to create strategy and assign roles for
specialized labor.
4. Begin five-minute timer.
5. Stop groups immediately at ringing of timer.
6. Track results.
TEAM
# OF
STUDENTS
ON TEAM
QTY OF
PACKAGED
SANDWICHES
AVG
PACKAGED
SANDWICHES/
MINUTE PER
STUDENT
PROJECTED
PACKAGED
SANDWICHES/
HOUR PER
STUDENT
PROJECTED
PACKAGED
SANDWICHES/
WORKDAY PER
STUDENT
1
2
3
4
8. Imagine that each student (employee) worked for $10 per hour. Calculate the
labor cost per 8-hour workday per student:
$___________
Copyright © Texas Education Agency, 2011. All rights reserved.
9
TEAM
LABOR
COST FOR
ALL
STUDENTS/
WORKDAY
COMBINED
PROJECTED
LABOR COST AND
PROJECTED
SANDWICH COST
FOR WORKDAY
1
2
3
4
9. Imagine that each sandwich sells for $3 each. Calculate revenue for each
team.
TEAM
SANDWICHES
PER WORKDAY
REVENUE PER
WORKDAY
1
2
3
4
10. Revenue less cost of sales equals gross margin. Cost of sales equals all
expenditures required to get the product or service to the customer.
Examples of product costs include all items in #1. Costs of labor are
included, as well. Finally, it includes indirect costs associated with
producing the items to be sold, i.e. rental of the production facilities and
payment of utilities where the product is being created and/or packaged
(indirect cost has not been included in this activity).
Calculate Gross Margin for each team.
Copyright © Texas Education Agency, 2011. All rights reserved.
10
TEAM
SANDWICHES
PER WORKDAY
REVENUE PER
WORKDAY
LESS:
PRODUCT
COST PER
WORKDAY
LESS:
LABOR
COST PER
WORKDAY
EQUALS
GROSS
MARGIN
1
2
3
4
11. Create charts/graphs reflecting the results (examples below).
a. Productivity: Quantity of sandwiches per student or team per hour.
b. Productivity: Quantity of sandwiches per student or team per workday.
c. Finance: Gross Margin per student.
d. Finance: Gross Margin per team.
Questions
1. Describe how you employed the use of specialization of labor and division of
labor within your team.
2. How did the number of students in your team positively or negatively affect
productivity?
3. What other methods can be used to improve productivity?
UNT in partnership with TEA, Copyright © All rights reserved. 4 Copyright © Texas Education Agency, 2011. All rights reserved.
11
PRODUCTIVITY
Directions:
Find each word.
Circle each letter individually.
the uncircled letters to fill in the blanks below.
s
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entrepreneur
innovation
labor
production
mass production
__ __ __ __ __ __ __ __ __ __ __ __ __ __
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productivity
resources
specialization
division of labor
assembly
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line
__ __
__ __ __ __ __
Created using Puzzlemaker at DiscoveryEducation.com Copyright © Texas Education Agency, 2011. All rights reserved.
12
Name: ________________________________________________  Date: ______________________
KWL Chart
Select a topic you want to research. In the first column, write what you already know
about the topic. In the second column, write what you want to know about the topic.
After you have completed your research, write what you learned in the third column.
What I Know
What I Want to Know
Copyright 2009 IRA/NCTE. All rights reserved.
ReadWriteThink materials may be reproduced for educational purposes.
What I Learned