A
Interpretation: Application of Multifactor Productivity Ratio to identify whether the recent process improvement has any noticeable effect on the organization.
Concept Introduction: The multifactor productivity ratio consists of the productivity of a collection of inputs included in the production process. This is used to identify how efficiently an organization utilizes its operational resources.
B
Interpretation: Application of Labor Productivity Ratio to identify improvements in the organizations workforce.
Concept Introduction: The Labor productivity ratio consists of the productivity of the workforce, this measures the number of units the workforce is capable of producing within an hour. This is used to identify how efficient the workforce is.
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OPERATIONS MANAGEMENT CUSTOM ACCESS
- Non-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_forwardAs a human resource specialist, you have decided to use a productivity factor approach for determining future human resource requirements and employee turnover rates for estimating availability of current employees for meeting human resource requirements. Current annual revenue is $325,000,000 with next year's revenue projection set at an increase of 15%; the revenue increase expected for the following year is 10%. Productivity of assembly / operative workers will increase 10% next year and 5% the year after next. Productivity of all other employees will remain constant over the next two years. A. How many employees are needed next year (or one year from now) in total and in each classification? B. How many employees in total and in each classification will be available one year from now to fill various positions? C. What action decisions are necessary when comparing the demand and supply forecasts for next year? D. How many assembly / operative workers are needed for two years from…arrow_forwardDescribe the meaning of the saying productivity is a relative measure ?arrow_forward
- A cleaning company uses $10 of chemical, $40 of labor, and $5 of misc. expenses for each house it cleans. After some quality complaints, the company has decided to decrease to increase its use of chemicals by 50%. By what percentage has multifacetor productivity fallen?arrow_forwardThe Wonderful Widget Company's earning have declined to the point where they need to reduce the number of employees from 1500 to 1440. Find the percent decrease in the company's workforce.arrow_forwardSteve is a marketing intern at Home-Style Cookies. One of Steve’s responsibilities is to set up a booth at assigned grocery stores to hand out cookie samples to increase sales. Last Monday, Steve handed out 800 samples in 8 hours. On Friday, Steve was training a new intern, Mike, and together they handed out 800 samples in 5 hours. Calculate the labor productivity for each day; provide your answers. For which day was the labor productivity higher? What are some possible reasons for the productivity differences?arrow_forward
- As 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_forwardA major airline is attempting to evaluate the effect of recent changes it has made in scheduling flights between New York City and Los Angeles. Data available are shown below: Number of Number of Flights Passengers 13 8,575 Month prior to schedule change (January) Month after schedule change (June) 22 15,566 Using January as the base period, compute a productivity index for January and June. Round your answers to the nearest whole number. Productivity index January June Using passengers per flight as a productivity indicator, comment on the apparent effect of the schedule change. Use the rounded numbers of passengers obtained above for your calculations. Round your answer for productivity indicator to one decimal place. Productivity -Select- by percent after the schedule change. This could be due to -Select- convenient flight times, -Select- schedules or some other intervening variable.arrow_forwardIn your opinion, how does the practice of benchmarking affect the performance of a company? Justify your answer using examples that are pertinent to the topic.arrow_forward
- 25) The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option out. What could be the possible reason for this? A) The industry is characterized by intense competition. B) Product prices are not related to organizational productivity. C) Selling price is negatively correlated to organizational productivity. D) Such an action would lead to reduced employee satisfaction.arrow_forwardplease solve wjthin 30 minutes.arrow_forwardPlease help me with the right optionarrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub