Concept explainers
a)
To determine: Productivity change for Charles Lackey’s bakery in loaves per dollar and with an increase in labor cost.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
b)
To determine: The new productivity for Charles Lackey’s bakery in loaves per dollar and with an increase in investment.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
c)
To determine: The percentage of productivity change for labor and investment.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
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Operations Management: Sustainability and Supply Chain Management (12th Edition)
- A company that processes fruits and vegetables is able to produce 1000 cases of canned peaches in 8 hours with four workers. Each worker is paid 2 RO per hour. What are the new labor hours, if output remains the same and the productivity in terms of cases/RO increased by 15%. Round to 2 decimal places O a. 7.82 hours O b. 6.96 hours O c. 5.57 workers O d. 2.35 hours Oe. None is correctarrow_forwardImagine that you are the Sales Assistant working from 8:30 AM to 4:30 PM including one-hour lunch break in ABC Limited. His tasks includes reviewing Sales plans, updating monthly sales reports, and handling client’s complaints. The daily rate given to you is 75 RO/day, How do you think your company would justify this pay? I will decide later. No, as work outputs can be easily measured. Maybe, as he is a new employee. Yes, as work outputs cannot be readily measured.arrow_forwardYou and your team came up with a plan by using robotic welders. First, compute how this would increase productivity. Year 1 Output (sales in $million) - 120 Labor (payroll, in $million) - 32 Capital (expenses, in $million) - 45 One-time capital investment ($million) - 10 YEAR 2 Output (sales, in $million) - 160 Labor(payroll, in $million) - 26 Capital (expenses, in $million) - 45 One time capital investment ($million) - what is Productivity year 1? What is Productivity Year 2 ? What is Change in Productivity ? What is Change in sales from Year 1 to Year 2? = Change in labor cost from Year 1 to Year 2? = Change in Capital cost from year 1 to year 2 ?= Investment required to create this change ?= ROI ? = Based on these results, is this project a good idea or not?arrow_forward
- 2. Employers often make hiring decisions for new employees based on a college degree and GPA even if the employment tasks are unrelated to the skills learned in college. Which of the following could be an explanation for this phenomenon? College education improves labor productivity; College education is a public good; College education serves as a signal for the hidden productivity of the worker. Pick the correct reason and explain why the others are not valid explanations for the given phenomenon.arrow_forwardProductivity should be a concern of every business organization.a. How is productivity defined?arrow_forwardProblem 9 A company that processes fruits and vegetables is able to produce 500 cases of canned peaches in one-half hour with four workers. Each worker is paid 4 Rials per hour. What is the change in labor hours if output remains the same and the labor productivity in terms of cases/hour increased by 50%?arrow_forward
- A paper factory produces 70,000 paper each week. The equipment used costs $10,000 and will remain productive for four years. The labor cost per year is $13,500. What is the productivity measure of “units of output per dollar of input” averaged over the four-year period? a. 228 b. 229 c. 230 d. 231 e. 232arrow_forwardThe relationship between training costs (x) and productivity (y) is given by the following formula, y = 5x + 4x2 + 37. a. Will Nonlinear Solver be guaranteed to identify the level of training that maximizes productivity? O No O Yes b. If training is set to 4, what will be the resulting level of productivity? (Round your answer to the nearest whole number.) Level of productivity ..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
- The productivity of a bakery can be improved by Select one: a. decreasing number of baked loaves while holding the quantity of flour used steady b. decreasing the quantity of flour used while holding number of baked loaves steady c. increasing the quantity of flour used while holding number of baked loaves steady d. none of the above Efficiency is Select one: a. determined by how busy workers are b. related to how well resources are used c. measured by customer satisfaction d. related to whether process objectives are metarrow_forwardIn December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a. How many hours did the average laborer work that month? b. If productivity can be increased to 0.11 vans per labor-hour, how many hours would the average laborer work that month? Please show work. Thank youarrow_forwardSuppose that a car dealership wishes to see if efficiency wages will help improve its salespeople’s productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day. a. What is the current labor cost per car sold? b. Suppose that when the dealer raises the price of labor to $30 per hour the average number of cars sold by a salesperson increases to two per day. What is now the labor cost per car sold? By how much is it higher or lower than it was before? Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased? c. Suppose that if the wage is raised a second time to $40 per hour the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold? d. If the firm’s goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $20 per hour, $30 per hour, or $40 per hour?…arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub