Concept explainers
a)
To determine: Productivity of Person L.
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 value.
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 increase.
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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Chapter 1 Solutions
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
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- Various financial data for the past two years follow: Output: Sales Input: Labor Raw Materials Energy Capital Other Last Year This Year $200,200 30005 34500 5000 48990 2000 Calculate the total productivity measure for this company for both years. O Last year: 1.77, This year: 1.88 Last year: 1.70, This year: 1.50 Last year: 1.66, This year: 1.42 $202,000 40005 44500 6100 48990 3005 O Last year: 1.60, This year: 1.32arrow_forwardLake Charles Seafood makes 500 wooden packingboxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to oper-ate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.a) Calculate the company’s productivity before the change inwork rules and after the change. b:) What is the percentage increase in productivity?c) If production is increased to 700 boxes per day, what is thenew productivity?arrow_forwardLake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two I 0-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.a) Calculate the company's productivity before the change in work rules and after the change.b) What is the percentage increase in productivity?c) If production is increased to 700 boxes per day, what is the new productivi ty?arrow_forward
- “Partial productivity measures should be calculated only for high-value-added activities.” Do youagree and why or why not?arrow_forwardASAP!! ANSWER PLEASE Carbondale Casting produces cast bronze valves on a 15-person assembly line. On a recent day, 280 valves were produced during a 10-hour shift. Calculate the labor productivity of the line. John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 300 units per 10-hour shift. What is the new labor productivity per labor-hour? What is the percentage of productivity increase?arrow_forwardMark Tuan, the Production Manager at MT Mills, can currently expect his operation to produce1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 laborhours to process. He believes that he can buy a better-quality raw cotton, which will enable himto 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 hepurchases the higher quality raw cotton? You are required to calculate: a) Productivity for the current raw cotton? b) The new productivity if Mark Tuan use the new raw cotton. c) What is the percentage increase in productivity?arrow_forward
- Lulu’s Dancewear operates a garment manufacturing business that employs 35 operators who work 7 hours a day (breaks already factored), 5 days a week. The plant has an 90% efficiency factor. A customer brought in an order for 5,800 units of a Style C that has a SAM of 20 min. How many units of style C are they producing in in a day? Round your answer to whole numbers but do not round until you get to the final answer. Group of answer choices 672 735 655 661arrow_forwardLori Cook produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 6 hours per day to produce 120 care packages. a) Lori's productivity = packages/hour (round your response to two decimal places). Lori thinks that by redesigning the package she can increase her total productivity to 160 care packages per day. b) Lori's new productivity = packages/hour (round your response to two decimal places). c) If Lori redesigns the package, the productivity increases by % (enter your response as a percentage rounded to two decimal places).arrow_forwardA furniture manufacturing company working on a 40 hour per week basis makes 100 chairs. The sales price is €70 each, and the company has the following costs:• Direct materials €700• Direct labor €300• Overhead €500a) Calculate the productivity of the company.b) What will be the new productivity if the company decides tomake 135 chairs per week?c) If the company decides to improve productivity throughmaterials costs reduction only, how much these costs mustbe reduced in order to achieve a 10 percent increase in totalproductivity?d) If the company repeats the same exercise as in (c) above, butthrough labour costs reduction, how much these costs mustbe reduced in order to achieve a 10 percent increase in totalproductivity?arrow_forward
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