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.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Operations Management
- Imagine 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_forward2. 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_forward
- Productivity should be a concern of every business organization.a. How is productivity defined?arrow_forwardA 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_forward
- Poor Work Ethics Cripple Productivity15 Feb 2018Poor work ethics has been identified as a leading factor in the lack of productivity. This came tolight during a Botswana National Productivity Centre (BNPC) seminar in Francistown onWednesday.One of the panelists, Mr Letsogile Batsetswe, a research consultant at BNPC, said poor work ethicsin both the public and private sector was considered the most problematic factor for doing businessin Botswana. He added that inadequate infrastructure, limited access to financing, corruption,inadequately educated workforce as well as restrictive labour regulations were rated as the mostproblematic across the country.The regional manager of BNPC, Mr Tshenolo Mapitse added that year after year poor work ethicswere always on the lead. He said government has invested a lot of money into fighting poor workethics, but that efforts continue to prove futile. Mr Batsetswe said a collaborative effort among thepublic sector, private sector and labour unions was…arrow_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_forward9 & 11arrow_forward
- 9 This large business has 127 employees, 19 of whom are managers or supervisors; its reduced productivity is 19 ÷ 127 = 14.9%. Suppose the executive manager realizes that the business can accomplish the same amount of work with only 3 line managers and 9 supervisors, and lays off the others. Calculate their new reduced productivity level. (Calculate to nearest tenth of a percent.) ______________________% a. 12.2% b. 11.8% c. 10.2% d. 9.4%arrow_forwardA team of workers makes 400 units of a product, which is sold in the market for $11 each. The accounting department reports that the labor costs are $400, $1000 for materials, and $300 for overhead. Calculate the productivity of this team operation. (In sales revenue/ Costs). 2.58 2.35 3.14 2.55arrow_forwardPlease help i need the solutionarrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub