Concept explainers
a)
To determine: Productivity of Person L.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
b)
To determine: The new productivity value.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
c)
To determine: The percentage of productivity increase.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
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Chapter 1 Solutions
Principles Of Operations Management
- her sorority. She is currently working a total of 5 hours per day to produce 100 care packages.a) What is Lori's productivity?b) Lori thinks that by redesigning the package, she can increaseher total productivity to I33 care packages per day. What will be her new productivity?c) What will be the percentage increase in productivity if Lori makes the change?arrow_forwardMatthew Bailey, as manager of Designs by Bailey,is upgrading his CAD software. The high-performance (HP)software rents for $3,000 per month per workstation. Thestandard-performance (SP) software rents for $2,000 per monthper workstation. The productivity figures that he has availablesuggest that the HP software is faster for his kind of design.Therefore, with the HP software he will need five engineers and with the SP software he will need six. This translates into a vari-able cost of $200 per drawing for the HP system and $240 per drawing for the SP system. At his projected volume of 80 draw-ings per month, which system should he rent?arrow_forwardA caterer prepares 2,000 meals for a client’ company event consuming the following resources: Labor → 6 hours @ $20 per hour Materials → $8 per meal Beverages → $4 per meal What is labor productivity? What is the multifactor productivity? To produce 2,000 pieces of luggage, a leather goods firm spends $1,000 on labor and $500 on materials. What is productivity? If the firms can increase production to 2,200 pieces of luggage with the same labor and material cost, what is the productivity? What is the percentage change? If the labor cost is reduced to $800 and materials increased to $600, what is the productivity to produce 2,200 pieces of luggage? An accounting firm can produce 8 monthly reports in three 8-hour shifts. What is the productivity of this firm? If this firm hires two additional workers, what would be the productivity of this firm? What is the percentage of productivity gain?arrow_forward
- Carbondale Casting produces cast bronze valves on a 12-person assembly line. On a recent day, 180 valves were produced during a 6-hour shift. a) Labor productivity of the line =O valves/labor hour (round your response to two decimal places). b) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 200 units per 6-hour shift. The new labor productivity = valves/labor hour (round your response to two decimal places). c) The percentage of productivity increase = % (round your response to one decimal place).arrow_forwardMr. ichul is a Director of a pastry factory in Bandung. To produce 350 cakes per day it takes the following things Labor : 350 hours / day @ $5 / hourRaw Material : 2 ton / day @ $1 / kgEnergy : $2,000 / dayCapital Cost : $500 / day a. What is the labor productivity per labor-hour for cake production at the factory?b. What is the multifactor productivity for cake production at the factory?c. In order to meet the needs for Eid later, Mr. ichul wants to increase his production to500 more per day than the previous cake production without changing other variables, what is the productivity now?arrow_forwardLake Charles Seafood makes 500 wooden packingboxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to oper-ate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.a) Calculate the company’s productivity before the change inwork rules and after the change. b:) What is the percentage increase in productivity?c) If production is increased to 700 boxes per day, what is thenew productivity?arrow_forward
- Various financial data for the past two years follow: Output: Sales Input: Labor Raw Materials Energy Capital Other Last Year This Year $200,200 30005 34500 5000 48990 2000 Calculate the total productivity measure for this company for both years. O Last year: 1.77, This year: 1.88 Last year: 1.70, This year: 1.50 Last year: 1.66, This year: 1.42 $202,000 40005 44500 6100 48990 3005 O Last year: 1.60, This year: 1.32arrow_forwardLake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two I 0-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.a) Calculate the company's productivity before the change in work rules and after the change.b) What is the percentage increase in productivity?c) If production is increased to 700 boxes per day, what is the new productivi ty?arrow_forward“Partial productivity measures should be calculated only for high-value-added activities.” Do youagree and why or why not?arrow_forward
- Matthew Bailey, as manager of Designs by Bailey,is upgrading his CAD software. The high-performance (HP)software rents for $3,000 per month per workstation. Thestandard-performance (SP) software rents for $2,000 permonth per workstation. The productivity figures that he hasavailable suggest that the HP software is faster for his kind ofdesign. Therefore, with the HP software he will need five engineers and with the SP software he will need six. This translatesinto a variable cost of $200 per drawing for the HP system and$240 per drawing for the SP system. At his projected volumeof 80 drawings per month, which system should he rent?arrow_forwardMark Tuan, the Production Manager at MT Mills, can currently expect his operation to produce1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 laborhours to process. He believes that he can buy a better-quality raw cotton, which will enable himto produce 1200 square yards per ton of raw cotton with the same labor hours.What will be the impact on productivity (measured in square yards per labor-hour) if hepurchases the higher quality raw cotton? You are required to calculate: a) Productivity for the current raw cotton? b) The new productivity if Mark Tuan use the new raw cotton. c) What is the percentage increase in productivity?arrow_forwardASAP!! ANSWER PLEASE Carbondale Casting produces cast bronze valves on a 15-person assembly line. On a recent day, 280 valves were produced during a 10-hour shift. Calculate the labor productivity of the line. John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 300 units per 10-hour shift. What is the new labor productivity per labor-hour? What is the percentage of productivity increase?arrow_forward
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