Concept explainers
a)
To determine: Person LC’s productivity before and after a change in work rules.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment’s that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know the cost efficiency.
b)
To determine: The percentage increase in productivity.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment’s that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know the cost efficiency.
c)
To determine: Person LC’s new labor productivity
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment’s that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know the cost efficiency.
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Operations Management
- he manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures: Week Crew Size Yards Installed 1 2 95 2 3 70 3 6 100 4 7 50 5 5 70 6 4 55 Click here for the Excel Data File a. Compute the labor productivity for each of the weeks. (Round your answers to 2 decimal places.) b. Which crew size works best?arrow_forwardMance Fraily, the Production Manager at Ralts Mills, can currently expect his operation to produce 1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 labor hours to process. He believes that he can buy a better-quality raw cotton, which will enable him to 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 he purchases the higher quality raw cotton?arrow_forwardABC Corporation is a furniture manufacturing company working on a 40 hour per week basis makes 135 chairs. The sales price is $75 each, and the company has the following costs:• Direct materials $790• Direct labor $360• Overhead $550Required:a. Calculate the productivity of the company.b. What will be the new productivity if the company decides to make 150 chairs per week?c. If the company decides to improve productivity through materials costs reduction only, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?d. If the company repeats the same exercise as in (c) above, but through labor costs reduction, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?arrow_forward
- In the Loans & Credits department of a TD Bank branch, there are 700 loan applications per week waiting to be processed. There are currently 8 employees (each works for 7 hours a day, 5 days a week) working in the department for processing the loan applications.( a ) What is the employee productivity (in applications/hour)?( b ) Due to the current economic situation, the director of the department anticipatesthat there will be a significant increase in the number of loan applications. If there are 1960 applications per week and the director wishes to increase the employee productivity to 3.5 applications per hour, how many additional employee should be hired?arrow_forwardplease solve wjthin 30 minutes.arrow_forwardPak Andi is a director of a cake factory in the Bekasi area. To produce 900 cakes per day it takes the following things: Labor 300 hours per day @ $ 96 per hour Raw material 3 tons per day @ $ 2 per kg Energy $ 10,000 per day Capital cost $ 5,000 per day a. What is the labor productivity per labor-hour for the production of cakes at the factory?b. What is the multifactor productivity for cake production at the factory?c. If Mr. Andi wants to increase his production to 1,500 cakes per day without changingother variables, what is the productivity now?arrow_forward
- Can you help with options a and b?arrow_forwardChetanarrow_forwardT-shirts Inc. has 12 operators, and the company works 8 hours a day (8 am to 5 pm with an hour break), 7 days a week. Company is manufacturing t-shirts and standard minute value for a line to finish a t-shirt =5 minutes. Company produces 8,000 t-shirts a week. Calculate the output, input and productivity (first two answers in minutes and third as a percentage [round to 100th place]). How long will this company need to complete a client’s order for 10,000 t-shirts?arrow_forward
- Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,200 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour 20,000 pounds per day @ $1.50 per pound $5,250 per day $10,250 per day Raw Material: Energy: Capital: a) Labor productivity per labor hour for these tires = tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires tires/dollar (round your response to four decimal places). %3Darrow_forwardplease solve within 30 minutes.arrow_forwardAn operation has a scrap rate of 15%. As a result, 102 sellable pieces per hour are produced. a. How many pieces per hour are produced, including scrap? (Enter your answer as a whole number.) b. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Enter your answer as a percentage rounded to one decimal.)arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,