ACCA Performance Management (F5) Certification Practice Exam

What improves throughput when there is no limited process?

1. Increased resources

2. Demand

3. Cost optimization

4. Training of staff

The correct answer is: Demand

Throughput refers to the rate at which a system produces output or achieves completed tasks within a specific timeframe. When considering what improves throughput in the absence of any process limitations, demand plays a critical role. High demand essentially means that there is more work or product required, which incentivizes an increase in output. When demand for a product or service rises, it encourages organizations to optimize their production processes to meet that demand. This can prompt the organization to enhance its efficiency and effectiveness, leading to higher throughput. The presence of demand stimulates activity and can accelerate processes, as companies strive to capitalize on available market opportunities. In contrast, while increased resources, cost optimization, or training of staff could potentially contribute to improved throughput, they don't directly drive or initiate the process of producing more output in the same impactful way that demand does. Increased resources might enhance capacity but won't guarantee that the output is utilized efficiently without demand driving the need for it. Cost optimization can improve profitability but doesn't inherently increase throughput without the pull of demand. Similarly, training staff can enhance individual performance but must be coupled with actual output requirements to effectively improve overall throughput. Hence, demand is the fundamental factor that can most immediately and directly enhance throughput when process limitations are absent.