Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 1, Problem 2AME
Summary Introduction
Interpretation: The revised productivity measure after the exclusion of lunch is to be identified.
Concept Introduction: A productivity measure is considered as a ratio of the total output against the single input or the total input utilized within the process of production.
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Munson Performance Auto Inc., modifies 350 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year's performance as a benchmark for future comparison. You have assembled the following data. Resource inputs were: labor, 10,000 hours; 540 suspension and engine modification kits; and energy, 100,000 kilowatt-hours. Average labor cost last year was $30 per hour, kits cost $1,000 each, and energy costs were $4 per kilowatt-hour.
The overall performance at Munson Performance Auto, Inc= autos/dollar of input (round your response to six decimal places).
okey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources:
Labor:
520
hours at
$17
per hour
Solvent:
125
gallons at
$8
per gallon
Machine Rental:
24
days at
$75
per day
a) Labor productivity per dollar =
nothing rugs/dollar (round your response to four decimal places)
b) Multifactor productivity = Rugs/dollar (round your response to four decimal places)
Productivity measurement is particularly difficult in the service sector. Why?
Chapter 1 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 1 - Prob. 2DQCh. 1 - A local hospital declares that it is committed to...Ch. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Although all nine of the competitive priorities...Ch. 1 - Choosing which processes are core to a firm’s...Ch. 1 - Prob. 8DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - (Refer to Solved Problem 1.) Coach Bjourn Toulouse...
Ch. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - The Big Black Bird Company (BBBC) has a large...Ch. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - The Morning Brew Coffee Shop sells Regular,...Ch. 1 - Prob. 1AMECh. 1 - Prob. 2AMECh. 1 - If an employee is hired, what will be the weekly...Ch. 1 - Suppose that, during the summer, the company works...Ch. 1 - Prob. 1VCCh. 1 - Prob. 2VCCh. 1 - Prob. 3VCCh. 1 - Prob. 1CCh. 1 - Prob. 2CCh. 1 - Prob. 3CCh. 1 - Prob. 4C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Describe the significant process strategy decisions and their effect on operations.arrow_forwardMunson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year’s performanceas a benchmark for future comparison. You have assembled the following data. Resource inputs were labor, 10,000 hours; 500 suspension and engine modification kits; and energy, 100,000 kilowatt-hours. Average labor cost last year was $20 per hour, kits cost $1,000 each, and energy costs were $3 per kilowatt hour. What do you tell Mr. Munson?arrow_forwardTo what ends should the available resources be put, in order to fulfill customer demands?arrow_forward
- The hospital controller was looking at the latest productivity report for the ICU. She noticed that total paid hours for the month of January were 3,887 and worked hours were 3,499. If the hospital runs on a 14 day pay period, how many productive FTE's were there for the month of January? Select one: O a. 22.0 FTES O b. 21.87 FTES O c. 24.30 FTES O d. 19.80 FTESarrow_forwardGeorge Kyparisis makes bearing balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity per year. He has the following data representing a month from last year and an equivalent month this year: LAST YEAR NOW Production 1,000 1,000 Labor (hours) 300 250 Resin (pounds) 50 45 Capital invested ($) |10,000 11,000 Energy (BTU) 3,000 2,750 Show the productivity percentage change for each category and the multifactor productivity if possible, and then determine the improvement for labor-hours, the typical standard for comparison.arrow_forwardDiscuss the benefits of the process strategy ?arrow_forward
- Discuss TWO (2) factors that influence the decision in determining which process technology to be used to improve operational efficiency. Provide with relevant real life companies as the examples.arrow_forwardLulu’s Dancewear operates a garment manufacturing business that employs 35 operators who work 7 hours a day (breaks already factored), 5 days a week. The plant has an 90% efficiency factor. A customer brought in an order for 5,800 units of a Style C that has a SAM of 20 min. How many units of style C are they producing in in a day? Round your answer to whole numbers but do not round until you get to the final answer. Group of answer choices 672 735 655 661arrow_forwardEVALUATION AND CONTROL PROCESSES”. How do you implement this concept in a company working in the Agriculture industry?arrow_forward
- George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last Year Now Cost Per Input Unit Units Produced 1,200 1,200 Labor (hours) Resin (pounds) $10 per hour $6 per pound 2% per month $0.60 per BTU 300 275 50 45 Capital Invested ($) Energy (BTU) 10,000 11,000 2,900 2,750 The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = % (enter your response as a percentage rounded to two decimal places).arrow_forwarda. A commercial project requires the installation of 1,856 square feet of acoustical ceiling. Using a productivity rate of 0.013 labor hours per square foot and a productivity factor of 0.95, determine the number of labor hours required to install the ceiling.arrow_forwardHow should the resources be used to satisfy the demands of the customer in order to meet those needs?arrow_forward
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