EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
Publisher: PEARSON
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Chapter 1, Problem 10P
Summary Introduction

To determine: The multifactor productivity of Company M.

Introduction: Multifactor productivity is an evaluation of economic performance that compares the amount of products and services produced to the amount of combined inputs used to produce those products and services.

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A car company modifies 375 cars per year. The manager 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 labour, 10,000 hours; 500 kilowatt-hours of energy. Average labour cost last year was €20 per hour, kits cost €1,000 each and energy costs were €3 per kilowatt-hour. What do you tell the manager?
Please do not give solution in image formate thanku.  Munson Performance​ Auto, Inc., modifies 475 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,10,500 ​hours; 540 suspension and engine modification​ kits; and​ energy, 110,000 ​kilowatt-hours. Average labor cost last year was ​$20 per​ hour, kits cost ​$1,000 ​each, and energy costs were ​$4 per​ kilowatt-hour.
T,F. Performance Measurement is complex because not all indices are definable and therefore are measurable.
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