Concept explainers
Introduction:
A baking company situated in New York employs fewer than 200 blue collar employees which has informal atmosphere. The company produces soft cookies over 50 varieties. The company has niche segment of customers promising high quality biscuits. Most of the patrons are over the age of 45 and prefer soft and non-sugary cookies.
The production process begins as soon as the management gets the order from its distributors. The production follows batch processing system. The list of cookies to be made is fed into the system by the personnel in charge and the system evaluates the quantity of ingredients to be mixed. The process is followed by a giant machine where additional products are mixed, baked, cooled and tested to check the quality. Finally the cookies are boxed and labeled automatically.
The manufactured cookies are shipped instantaneously due to the perishable nature. The cookies are tested for its quality by a testing inspector. X-ray test is also done to detect the existence of any foreign materials that may be present inside the cookies.
The company takes extra care to reduce the scrap formation and gets inputs from its customer for further potential developments.
To determine: The two ways through which the company has increased its productivity and explain the rationale behind increasing the length of the oven results in faster output rate.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
- John was asked to review a new computer part that is going to be manufactured in fivedifferent locations around the world. He is asked to try to figure out how to save somemoney as the part is just a little bit too expensive to make at this time. However, researchof their customers indicates there is a strong market for the product. Two of the plant managers get together and figure out a way to replace part of theproduct with a much cheaper material, making the product more affordable tomanufacture. Quality significantly goes down with the cheaper part. It is more likely to break on theconsumer in the first year of use. John reports this to his boss. We need this product and we have insurance to cover us if we need to do a major recall.Sign it tomorrow, John. We need to go into production by the end of next month. Wereally need to go forward with this to keep two plants open. John’s boss asks him to ‘sign off’ on the modifications because company protocolrequires a corporate…arrow_forwardCompany ABC wants to assess its productivity. The company has 8 employees,working 8 hours per day (salary: RM 10 /= per hour) which cost the company RM 640/=of the payroll per day. Other expenses incurred per day amounts to RM 600.One employee is able to produce 20 units of products in a day. Calculate the multifactor productivity.arrow_forwardwhat are the implications of the misconception that labour is the main factor affecting productivity and that working harder is equivalent to higher productivity on "the Operations Functions" and" the Logistics Functions"arrow_forward
- The Clark-Fisher hypothesis is about O a. Service sector has higher productivity than manufacturing O b. Employment shifts from one sector of economy to another due to increase in productivity O c. Manufacturing has higher productivity than service O d. More people are engaged in manufacturing than servicearrow_forwardAI Maha company produces 600 units in a ten-hour day by 2 workers who use 400 kilos of raw materials. Each Worker is paid 5 Omani Rials per hour; raw material cost is 0.5 Rial per kilo. The overhead cost is 60 Omani Rials. Calculate the labor productivity measured in units per Rial O a. 6.0 O b. 4.0 O c. 2.5 O d. 1.67 O e. None is correctarrow_forwardThe following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer. Customers Unit Employees Processed/Day A 4 36 В 5 40 C 8 60 3 20 Compute the labor productivity and the multifactor productivity for Unit A. Use an eight-hour day for multifactor productivity.arrow_forward
- Calculate the partial productivity of the given - Output - 500000 rupees Human input - 10 % of output Capital input - 40% of human inputarrow_forwardQ- ABC Company produces 10,000 units per month. The unit is sold in the market for $2. The labor costs the company $5,000 per month. The material to produce the required quantity costs them $1,000. The overhead cost for the company is $3,000. Calculate the multifactor productivity for the company.arrow_forwardThe following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer. PLEASE SHOW WORK, SO I CAN UNDERSTAND THE STEPS. Unit Employees Customers Processed/Day A 4 36 B 5 40 C 8 60 D 3 20 Compute the labor productivity for each unit (Unit A, B, C, and D) Use an eight-hour day for multifactor productivity. Compute the multifactor productivity for each unit (Unit A, B, C, and D)arrow_forward
- what are the various other factors which can equally affect productivity apart from the misconception that labour is the main factor affecting productivity and that working harder is equivalent to higher productivity.arrow_forwardA garments manufacturing firmm produces high end fashion garments. The following is information about the inputs and outpns for one ul ther latest design. Calculate the followings a Total measure productivity bMultifactor productivity based on Labor and Energy Units sold Unit price Labor hours per unit Wage rate Total material Total energy 1200 AED 700 12.5 AED 15/ hour 60% of price 5% of pricearrow_forwardThis year, Druehl, Inc., will produce 60,000 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.25 hot water heaters per labor hour, how many laborers are employed at the plant?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.