Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 2, Problem 5P
Summary Introduction

To determine: The increase in labor productivity by eliminating amount of scrap formation.

Introduction: Labor productivity is the measure of productivity of a worker during a period of time. It the ratio of total output to the total productivity hours.

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An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap?
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