Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
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.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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
40
50
60
70
80
advance
Capital per hour of labor (2009 dollars)
>>> Draw only the objects specified in the question.
Selected:
Delete Clear
none
Next
Chapter 2 Solutions
Operations Management
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. 1OTQCh. 2 - Prob. 2OTQCh. 2 - Prob. 3OTQCh. 2 - Prob. 4OTQCh. 2 - Prob. 5OTQCh. 2 - Prob. 6OTQCh. 2 - Prob. 7OTQ
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
- 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
- Pak Andi is a director of a cake factory in the Bekasi area. To produce 900 cakes per day it takes the following things: Labor 300 hours per day @ $ 96 per hour Raw material 3 tons per day @ $ 2 per kg Energy $ 10,000 per day Capital cost $ 5,000 per day a. What is the labor productivity per labor-hour for the production of cakes at the factory?b. What is the multifactor productivity for cake production at the factory?c. If Mr. Andi wants to increase his production to 1,500 cakes per day without changingother variables, what is the productivity now?arrow_forwardager checked production records and found that a worker produced 195 units while working 50 hours. In the previous week, the worker produced 148 units while working 40 hours. mpute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.) rrent period productivity evious period productivity Units / hr Units / hr Did the worker's productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 cimal places. Omit the "%" sign in your response.) Vorker's productivity (Click to select) byarrow_forwardA shoe factory produces 95,000 shoes each week. The equipment used costs $15,000 and will remain productive for three years. The labor cost per year is $16,000. What is the productivity measure of “units of output per dollar of input” averaged over the three-year period? Hint: Productivity = total units produced divided by the total labor cost plus total equipment costarrow_forward
- PV company produces electric vehicles. Current manufacturing operations allow the company to make 248 cars each day. The company has 22 engineers, each working 8 hours per day. The company has introduced some small changes in equipment and conducted appropriate job training so that production levels have risen to 330 cars per day. These changes did not require any change in the amount of capital spending or energy use. What is the PV company's new labor productivity?arrow_forwardSUPPOSE THAT You are hired as an operations manager for an organization which is having some problems, and you are supposed to help them to put things back on track. In order to do so, there are a number of decisions you have to take regarding the following issue: Productivity: You found that the productivity is declining the past two years at your organization. Measure the multifactor productivity for the current period and compare it to the previous period. Comment on your results showing what might lead to decreasing the productivity and show how can you improve the productivity at your organization. You are supposed to estimate the all the needed numbers.arrow_forwardExplain the meaning of the saying that productivity is a relative measure briefly .arrow_forward
- An auto dealership has 6 sales people who each work 8.5 hours per day at a rate of $20 per hour plus a $200 commission on each car sold. Each week (5- day weeks) electricity costs are $315 as well as capital costs of $65 per day. If the team sells 3 cars per day what is their multi-factor productivity? 0.001507 cars/dollar 1.716 cars/dollar 0.002941 cars/dollar 0.001716 cars/dollararrow_forwardIn the fewest possible words, define the phrase "balanced scorecard." What is the connection between it and a business's operations?arrow_forwardBriefly discuss the different components that contribute to "Superior Efficiency". Give an example for each component.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,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations 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 Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.