Concept explainers
a)
To define: Productivity
Introduction: Productivity is the measure of performance of a person, machine or an organization. It is computed by dividing the average output per period by the total cost incurred or resources used in the process.
b)
To determine: The usage of productivity measures.
Introduction: Productivity is the measure of performance of a person, machine or an organization. It is computed by dividing the average output per period by the total cost incurred or resources used in the process.
c)
To determine: The importance of productivity.
Introduction: Productivity is the measure of performance of a person, machine or an organization. It is computed by dividing the average output per period by the total cost incurred or resources used in the process.
d)
To determine: The unit in the organization which is primarily responsible for productivity.
Introduction: Productivity is the measure of performance of a person, machine or an organization. It is computed by dividing the average output per period by the total cost incurred or resources used in the process.
e)
To explain: The difference of productivity from efficiency.
Introduction: Productivity is the measure of performance of a person, machine or an organization. It is computed by dividing the average output per period by the total cost incurred or resources used in the process.
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EBK OPERATIONS MANAGEMENT
- "We are already measuring total factor productivity. Measuring partial productivities would be of no value." Do you agree? A. Yes, total factor productivity is the goal of the measurement. Once achieved there is no need for further analysis. B. Yes, partial productivity measures should only be calculated if you cannot calculate total factor productivity. C. No, total factor productivity and partial productivity measures work best together because the strengths of one offset weaknesses in the other. D. No, you must always calculate partial productivity measures for the total factor productivity to have any meaning.arrow_forwardI'm not certain where to start with this questionDetermine the productivity for each month. Assume labor costs $10.00 / hour and each unit sells for $25.00.Month Labor (hours) Material costs Output (units) ProductivityJanuary 400 $5,000 8,000February 350 $3,500 7,000March 450 $6,000 6,000A) State the formulaB) Calculate ProductivityC) Interpret the resultsarrow_forwardWhat is Total Productivity Management and why is it important?arrow_forward
- You and your team came up with a plan by using robotic welders. First, compute how this would increase productivity. Year 1 Output (sales in $million) - 120 Labor (payroll, in $million) - 32 Capital (expenses, in $million) - 45 One-time capital investment ($million) - 10 YEAR 2 Output (sales, in $million) - 160 Labor(payroll, in $million) - 26 Capital (expenses, in $million) - 45 One time capital investment ($million) - what is Productivity year 1? What is Productivity Year 2 ? What is Change in Productivity ? What is Change in sales from Year 1 to Year 2? = Change in labor cost from Year 1 to Year 2? = Change in Capital cost from year 1 to year 2 ?= Investment required to create this change ?= ROI ? = Based on these results, is this project a good idea or not?arrow_forward10. Bochie's samgyupsal restaurant is now experiencing low sales because it is rainy season and he don't know what action to do. What do you think he should do in the first place to prevent this problem? A. He should use benchmarking in order to compare his business to other businesses B. He should include his subordinates in planning to resolve the issue. C. He should have contingency offerings in his restaurants that is suitable to the rainy weather. D. He should list the activities that he must accomplish in order to achieve his objectives.arrow_forwardWhat are three security measures that will help a company while reducing productivity?arrow_forward
- A company is able to produce 2,350 units of product A monthly. This level of production requires spending $1,000 on labor, $520 on materials, and $2,000 on overhead expenses. Calculate the multifactor productivity. Assuming the company can increase its production to 2,850 units, following an increase of materials expenses to $960, and labor expenses to 1,240. Is it worthy to increase the production level? Justify.arrow_forwardOne of the abilities that decide one’s productivity is the ability to manage time. Discuss any 5 time-management skills that can help people improve their productivity.arrow_forwardWhat do you understand by productivity? How would you apply the knowledge of productivity in your organization?arrow_forward
- Develop a Balanced Scorecard for 'Amazon' as a business/company. Provide a thorough analysis of the Scorecard. The scorecard is utilized to understand how well the strategy ideas support the organization and achieves the balance of the company needs versus consumers. Some of the key categories are below: Financial Metrics: How will you measure success or progress for your alternatives? Operations / Internal processes: What processes will be used in support of your strategy alternatives? Learning and growth measures: What actions are required for employees? Customer Measures: What customer measures are needed to support improvements? Other (Social Responsibility, Business Ethics, Managers) Global Evaluation: What is the global presence of your company? Evaluation can be based on cultural, political, financial, legal elements.arrow_forwardPlease answer the last two. A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers you can access data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of non-defective items produced per worker (output). (a) Carefully state the ceteris paribus thought experiment underlying this policy question. (b) Does it seem likely that a firm decision to train its workers will be independent of worker characteristics? (c) List 3 measurable and unmeasurable worker characteristics. (d) Name a factor other than worker characteristics that can affect workers' productivity. (e) If you find a positive correlation between output and training, would you convincingly established that job training makes workers more productive? Explainarrow_forward25) The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option out. What could be the possible reason for this? A) The industry is characterized by intense competition. B) Product prices are not related to organizational productivity. C) Selling price is negatively correlated to organizational productivity. D) Such an action would lead to reduced employee satisfaction.arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub