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 e c r u o s e r m r l b q s y b n o i t a v o n n i o m w p n p d r a b g v z m b s q b x e c e r s l u o n u f u o m t a c w a d o e s a e r d f v w a i l p f d p d n p t b n y v g k a o f p c z o u i e i r o e k c l b w o s v b k c l c o j x r r i m n h n o c g o t y i n a r r z p l m o o z m a d i l a o p u a z d e w b i t u s p o b l f d t f d m o r s s p r a h n m entrepreneur innovation labor production mass production __ __ __ __ __ __ __ __ __ __ __ __ __ __ i l i n v z l j e t i z x h w v e z o u q c p i w t w v n i q m n s n a l z b r f y k m i r e d h c s y t I v I t c u d o d r p b r k a Use s e m a s s p r o d u c t i o n u productivity resources specialization division of labor assembly dd 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