OPERATIONS MANAGEMENT W/ CNCT+
12th Edition
ISBN: 9781259574931
Author: Stevenson
Publisher: MCG CUSTOM
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Chapter 2, Problem 3CTE
Summary Introduction
To explain: Efficiency improvement trap.
Introduction: Competitiveness, strategy making and productivity are three crucial aspects for a firm to withstand and succeed in present competitive business environment. These elements are interrelated which must be handled efficiently in order to attain competitive edge.
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While it is true that increased efficiency leads to increased productivity, it is also possible to fall into the efficiency improvement trap, please explain.
Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours
are given below.
QUANTITY
$/UNIT
$ 9,050/car
$10,550/car
Deluxe car
3,625 units sold
6,525 units sold
22,750 hours
29,865 hours
Limited car
Labor, Deluxe
Labor, Limited
$
12/hour
$
15/hour
What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dollar of labor
expense. (Round your answers to 2 decimal places.)
Labor Productivity
Units/hour
Dollars
Deluxe car
Limited car
The graph shows the productivity curves in year 1 and year 2 for an
Real GDP per hour of labor (2009 dollars)
economy.
44-
PC2
Draw a point to show real GDP per hour of labor in year 1 if capital per
hour of labor is $30. Label it 1.
Draw a point to show real GDP per hour of labor in year 2 if capital per
hour of labor is $40. Label it 2.
40-
36-
32-
28-
PC
The upward shift of the productivity curve is due to
increase in capital per hour of labor is due to
and the
24-
20-
O A. an increase in human capital or a technological advance; an
increase in saving or an increase in investment in physical
16-
capital
12-
B. an increase in the population; an increase in the population
8-
OC. an increase in saving; an increase in human capital
4-
O D.
an increase in investment in physical capital; a technological
0+
10
20
30
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advance
Capital per hour of labor (2009 dollars)
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Chapter 2 Solutions
OPERATIONS MANAGEMENT W/ CNCT+
Ch. 2.7 - Prob. 1.1RQCh. 2.7 - Prob. 1.2RQCh. 2.7 - Prob. 1.3RQCh. 2.7 - Prob. 2.1RQCh. 2.7 - Prob. 2.2RQCh. 2 - Prob. 1DRQCh. 2 - List the key ways that organizations compete.Ch. 2 - Prob. 3DRQCh. 2 - Prob. 4DRQCh. 2 - Prob. 5DRQ
Ch. 2 - Contrast the terms strategies and tactics.Ch. 2 - Contrast Organization and operations strategy.Ch. 2 - Prob. 8DRQCh. 2 - Prob. 9DRQCh. 2 - Prob. 10DRQCh. 2 - Prob. 11DRQCh. 2 - Prob. 12DRQCh. 2 - Prob. 13DRQCh. 2 - Prob. 14DRQCh. 2 - Prob. 15DRQCh. 2 - Who needs to be involved in formulating...Ch. 2 - Prob. 2TSCh. 2 - Prob. 3TSCh. 2 - Prob. 1CTECh. 2 - Prob. 2CTECh. 2 - Prob. 3CTECh. 2 - Prob. 4CTECh. 2 - Prob. 5CTECh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - A company offers ID theft protection wing leads...Ch. 2 - Prob. 1.1CQCh. 2 - Prob. 1.2CQCh. 2 - Prob. 1.3CQCh. 2 - Prob. 2.1CQCh. 2 - Prob. 2.2CQCh. 2 - Prob. 2.3CQCh. 2 - Prob. 2.4CQCh. 2 - Prob. 2.5CQCh. 2 - Prob. 2.6CQCh. 2 - Prob. 2.7CQCh. 2 - Prob. 3.1CQCh. 2 - Prob. 3.2CQCh. 2 - Prob. 3.3CQCh. 2 - Prob. 3.4CQCh. 2 - Prob. 3.5CQCh. 2 - Prob. 4.1CQCh. 2 - Prob. 4.2CQCh. 2 - Prob. 4.3CQCh. 2 - Prob. 1OTQCh. 2 - Prob. 2OTQCh. 2 - Prob. 3OTQCh. 2 - Prob. 4OTQCh. 2 - Prob. 5OTQCh. 2 - Prob. 6OTQCh. 2 - Prob. 7OTQ
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- Problem 2 You have just been given the following production data for 2010 and 2011. Calculate the total productivity measure and the partial measures for labour, capital, energy, and raw materials for both years. 2010 $400,000 $50,000 $100,000 $8,000 $60,000 Output: Input: Sales Labour Capital Energy Raw Materials Comment about the productivity of the company. 2011 $480,000 $60,000 $110,000 $9,500 $80,000arrow_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_forwardCan someone please help me to solve all parts of the following problem showing all work. Thank you!arrow_forward
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