Concept explainers
a)
To determine: The multifactor productivity for last year.
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.
b)
To determine: The multifactor productivity for the current year.
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.
c)
To determine: The percentage change in productivity for the monthly average last year versus the monthly average this year.
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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EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
- As part of a study for the Department of LaborStatistics, you are assigned the task of evaluating the improvementin productivity of small businesses. Data for one of thesmallbusinesses you are to evaluate are shown at right. The dataarethe monthly average of last year and the monthly average thisyear.Determine the multifactor productivity with dollars as thecommondenominator for: a) Last year. b) This year. c) Then determine the percent change in productivity for the monthly average last year versus the monthly average this yearon a multifactor basis. ◆ Labor: $8 per hour◆ Capital: 0.83% per month of investment◆ Energy: $0.60 per BTUarrow_forward(b) Productivity is related with outputs and inputs. i) List ONE example of outputs and inputs each. ii) Derive the productivity Equation using outputs and inputsarrow_forwardElectronic Computer Equipment Firms Note: you'll refer to this context in several problems. An economist complied data on productivity improvements last year for a sample of firms producing electronic computing equipment. The firms were classified according to their average- rate-of-change (AROC) of Research and Development (R&D) expenditures with respect to the last three years (low, moderate, high). A. Select all of the factors in the study. Chigh R&D R&D Expenditure moderate x productivity Oproductivity improvements CAROC R&D Expenditure per 3 years B. Select all of the treatments (if experiment) or groupings (if quasi-experiment/observational study) in the study. Omoderate productivity improvements high low productivity x R&D Expenditure productivity x firm productivity Question Help: Message instructor Add Work Omoderate firm Olow high x productivity productivity R&D AROC R&D Expenditure per 3 years OR&D Expenditure low x productivity firmarrow_forward
- Please explain what is meant by the term "balanced scorecard" in as few words as possible. What bearing does it have on the functioning of a business?arrow_forwardNon-financial performance indicators Identifying the critical success factors of a business is a key element in determining the non-financial performance indicators. Select an organization that you are familiar with, define the organization’s objectives, and identify two (2) critical success factors, and recommend one non-financial performance indicator, which must be measurable (expressed in a numerical formula). Note: the organization could be a business, a restaurant, a shop, a school club, as long as the organization’sobjectives are clear.arrow_forwardA retail store had sales of $45,000 in April and $56,000 in May. The store employs eight full-time workers who work a 40-hour week. In April, the store also had seven part-time workers at 10 hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity from April to May?arrow_forward
- Which one is NOT an index of Productivity?(A) Man-hour output(B) Productivity ratio(C) TQM(D) Use of Financial Ratiosarrow_forwardAs part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year. Labor: $9 per hour; Capital: 0.84% per month of investment; Energy: $0.80 per BTU. LAST YEAR THIS YEAR Production (dozen) 2,000 2,000 Labor (hours) 370 350 Capital investment ($) 20,000 23,000 Energy (BTU) 3,500 3,200 a) Determine the multifactor productivity with dollars as the common denominator for last year. The multifactor…arrow_forwardThe 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 4 96 2 3 72 3 92 4 2 50 5 3 69 6 52 Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity?arrow_forward
- 3-arrow_forwardDescribe the meaning of the saying productivity is a relative measure ?arrow_forwardA factory produces 14,000 desk staplers each week. The equipment used costs $50,000 and will remain productive for four years. The labor cost per year is $190,000. a. What is the productivity measure of "units of output per dollar of input" averaged over the four-year period? Assume that there are 52 weeks per year. Round your answer to two decimal places. units of output per dollar input b. We have the option of buying $55,000 of new equipment, with an operating life of seven years. It would reduce labor costs to $124,000 per year. Should we consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to two decimal places. For the newer machine, the productivity is -Select-, it would be a-Select- investment. -Select- higher lower units of output per dollar input. Because the productivity of the new machine isarrow_forward
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