QUESTION 1 (PRODUCTIVITY) A company has introduced a process improvement that reduces processing time for each unit so that output is increased by 25% with less material but one additional worker required. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. a) Compute single factor productivity of labor in the old system. (Compute it in four possible ways.) b) Compute all factor productivity for both old and new systems. Factor Output # of workers Worker cost Material Overhead Price Old System 60 5 $12/hr $16/unit 1.6(labor cost) 31 New System 60(1.25)=75 6 $12/hr $10/unit 1.6(labor cost) 31

QUESTION 1 (PRODUCTIVITY) A company has introduced a process improvement that reduces processing time for each unit so that output is increased by 25% with less material but one additional worker required. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. a) Compute single factor productivity of labor in the old system. (Compute it in four possible ways.) b) Compute all factor productivity for both old and new systems. Factor Output # of workers Worker cost Material Overhead Price Old System 60 5 $12/hr $16/unit 1.6(labor cost) 31 New System 60(1.25)=75 6 $12/hr $10/unit 1.6(labor cost) 31

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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QUESTION 11 Level production involves producing at a constant rate and using inventory as needed to meet demand. True False QUESTION 12 The role of operations is to: convert inputs into outputs. create value. serve as a technical core. All of the above. QUESTION 13 Production design refers to how the product will perform the product will look the product will be made easily the product can be maintained
Q2 need in 10 minutes
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THIS IS FOR REVISION PURPOSES. NOT GRADED
b. c. Dr. Phil d. Dr. Deming QUESTION 7 A conversion process consists of four steps: cutting, welding, tumbling, and painting. The steps have a defect rate of 35, 17, 5, and 12 respectively for every 1,000 good products made. What is the rolled throughput yield for this process? O a. 93.1% O b. 93.5% O c. 98.4% O d. 98.0%
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