A U.S company has two manufacturing plants, one in the United State and one in another country. Both produce the same item, eachfor sale in their respective countries. However, their productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing, while the other plants uses a higher percentage of labor. Expalin how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A U.S company has two manufacturing plants, one in the United State and one in another country. Both produce the same item, eachfor sale in their respective countries. However, their productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing, while the other plants uses a higher percentage of labor. Expalin how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful? 

 

Week Crew Size Yards Installed
1
2
ن برا
3
4
5
16
4
3
4
نیا
2
ن نیا
3
2
Crew Size
96
72
92
50
69
52
2
3 4
Labor Productivity per
Worker
Crew Size Productivity
Most Productive Crew Size
Transcribed Image Text:Week Crew Size Yards Installed 1 2 ن برا 3 4 5 16 4 3 4 نیا 2 ن نیا 3 2 Crew Size 96 72 92 50 69 52 2 3 4 Labor Productivity per Worker Crew Size Productivity Most Productive Crew Size
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