Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 1, Problem 8P
a.
Summary Introduction
Introduction: Multifactor productivity is calculated by dividing the
To identify: Process which is more productive.
b.
Summary Introduction
Introduction:
Multifactor factor productivity represents the efficiency of a production factors such as labor and funds which is used in the production process of the company. It is computed by dividing output over input.
To analyze:Draw a conclusion from analysis.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two
different processes, named Alpha and Beta, which can be used to make a component part. To make the correct decision, the managers would like to
compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for Alpha and Beta is $170 per unit
of product A and $150 per unit of product B, and the corresponding overhead costs for Alpha and Beta are $8,000 and $6,000, respectively.
!
Process Alpha
Process Beta
Product
Output (units)
Labor ($)
Materials ($)
A
B
A
B
40
80
60
30
$1,200
$1,400 $1,000
$2,000
$3,500
$1,500 $1,400 $3,000
a. Which process, Alpha or Beta, is more productive?
Process Alpha has % higher labor productivity. Process
has
% higher multifactor productivity. (Enter your responses rounded to the
nearest whole number.)
Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make two component parts A and B. To make the correct decision, the managers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for component A and B are $175 and $140 per unit, respectively. The corresponding overhead costs are $6,000 and $5,000, respectively.
a. Which process, Alpha or Beta, is more productive?b. What conclusions can you draw from your analysis?
Mariah Enterprses makes a variety of consumer electronic products Its camera manutacturing plant is considering choosing betwoen two different processes, named
Alpha and Beta, which can be used to make a component part To make the correct docision, the mariagers would like to compare the labor and multifactor
productivity of process Alpha with that of process Beta The value of process output for Alpha and Beta is $140 per unit of product A and $160 por unit of product B,
and the corresponding overhead costs tor Alpha and Beta are $3,000 and S8,000, respoctively
Process Alpha
Process Beta
Product
Output (units)
Labor (S)
Materials (5)
B.
A
80
40
70
60
$2,000
$2,500
$1,200 $1,400 $1,000
$1,400 $3,500 $1,500
a. Which process, Alpha or Beta, is more productive?
Process Beta hass higher labor productivity Process
has % highor multifactor productivity (Enter your responses rounded to the nearest whole
number)
Chapter 1 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 1 - Prob. 2DQCh. 1 - A local hospital declares that it is committed to...Ch. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Although all nine of the competitive priorities...Ch. 1 - Choosing which processes are core to a firm’s...Ch. 1 - Prob. 8DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - (Refer to Solved Problem 1.) Coach Bjourn Toulouse...
Ch. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - The Big Black Bird Company (BBBC) has a large...Ch. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - The Morning Brew Coffee Shop sells Regular,...Ch. 1 - Prob. 1AMECh. 1 - Prob. 2AMECh. 1 - If an employee is hired, what will be the weekly...Ch. 1 - Suppose that, during the summer, the company works...Ch. 1 - Prob. 1VCCh. 1 - Prob. 2VCCh. 1 - Prob. 3VCCh. 1 - Prob. 1CCh. 1 - Prob. 2CCh. 1 - Prob. 3CCh. 1 - Prob. 4C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- please solve wjthin 30 minutes.arrow_forwardplease answer correctly. The selections are either BETA or ALPHA Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make a component part. To make the correct decision, the managers would like to compare the labor and mulifactor produclivity of process Alpha wilth that of process Beta. The value of process oulput for Alpha and Beta is $130 per unit of product A and $200 per unit of product B, and the corresponding overhead costs for Alpha and Beta are $5,000 and $7,000, respectively. Process Alpha B Process Beta Product Output (units) Labor (S) Materials (S) A A B 40 60 80 50 $1,200 $1,400 $1,000 $2,000 $1,500 $2,500 S3,000 $3,500 a. Which process, Alpha or Beta, is more productive? Process has % higher labor productivity. Process V has % higher multifactor productivity. (Enter your responses rounded to the nearest whole number.)arrow_forwardDanna Lumus, the marketing manager for a division that produces a variety of paper products, is considering the divisional manager’s request for a sales forecast for a new line of paper napkins. The divisional manager has been gathering data so that he can choose between two different production processes. The first process would have a variable cost of $10 per case produced and total fixed cost of $100,000. The second process would have a variable cost of $6 per case and total fixed cost of $200,000. The selling price would be $30 per case. Danna had just completed a marketing analysis that projects annual sales of 30,000 cases. Danna is reluctant to report the 30,000 forecast to the divisional manager. She knows that the first process would be labor intensive, whereas the second would be largely automated with little labor and no requirement for an additional production supervisor. If the first process is chosen, Jerry Johnson, a good friend, will be appointed as the line supervisor.…arrow_forward
- Danna Lumus, the marketing manager for a division that produces a variety of paper products, is considering the divisional manager’s request for a sales forecast for a new line of paper napkins. The divisional manager has been gathering data so that he can choose between two different production processes. The first process would have a variable cost of $10 per case produced and total fixed cost of $100,000. The second process would have a variable cost of $6 per case and total fixed cost of $200,000. The selling price would be $30 per case. Danna had just completed a marketing analysis that projects annual sales of 30,000 cases. Danna is reluctant to report the 30,000 forecast to the divisional manager. She knows that the first process would be labor intensive, whereas the second would be largely automated with little labor and no requirement for an additional production supervisor. If the first process is chosen, Jerry Johnson, a good friend, will be appointed as the line supervisor.…arrow_forwardI already find beta, but I can't solve for Alpha. Please help mearrow_forwardMatthew Bailey, as manager of Designs by Bailey,is upgrading his CAD software. The high-performance (HP)software rents for $3,000 per month per workstation. Thestandard-performance (SP) software rents for $2,000 per monthper workstation. The productivity figures that he has availablesuggest that the HP software is faster for his kind of design.Therefore, with the HP software he will need five engineers and with the SP software he will need six. This translates into a vari-able cost of $200 per drawing for the HP system and $240 per drawing for the SP system. At his projected volume of 80 draw-ings per month, which system should he rent?arrow_forward
- Mance Fraily, the Production Manager at Ralts Mills, can currently expect his operation to produce 1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 labor hours to process. He believes that he can buy a better-quality raw cotton, which will enable him to 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 he purchases the higher quality raw cotton?arrow_forwardIn the Loans & Credits department of a TD Bank branch, there are 700 loan applications per week waiting to be processed. There are currently 8 employees (each works for 7 hours a day, 5 days a week) working in the department for processing the loan applications.( a ) What is the employee productivity (in applications/hour)?( b ) Due to the current economic situation, the director of the department anticipatesthat there will be a significant increase in the number of loan applications. If there are 1960 applications per week and the director wishes to increase the employee productivity to 3.5 applications per hour, how many additional employee should be hired?arrow_forwardA manufacturing firm is considering the following data related to three process strategies for expanding its operations. Flexible Manufacturing System (FMS) Annual production level (units) General Purpose Equipment (GPE) 50,000 Dedicated Machine (DM) 50,000 50,000 Annual fixed cost (USD) 100,000 220,000 800,000 Per unit variable cost (USD) 21 14 8. What is the maximum value of the unit variable cost (rounded to the nearest whole number) of FMS that will not affect the optimal choice for this problem?arrow_forward
- George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last Year Now Cost Per Input Unit Units Produced 1,200 1,200 Labor (hours) Resin (pounds) $10 per hour $6 per pound 2% per month $0.60 per BTU 300 275 50 45 Capital Invested ($) Energy (BTU) 10,000 11,000 2,900 2,750 The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = % (enter your response as a percentage rounded to two decimal places).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_forwardAt Symtecks, the output of a specific process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks: Week 1 Week 2 Week 3 Week 4 Units Produced 1,124 1,310 1,092 981 Labor ($) 12,735 14,842 10,603 9,526 Material ($) 21,041 24,523 20,442 18,364 Overhead ($) 8,992 10,480 8,736 7,848 a. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.b. Has labor productivity changed? Use the labor productivity ratio to support your answer.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,