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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Operations Management
- Analyze the level of productivity at the company,along with the productivity variables.how can the company improve its level of productivity? explain thoroughly.arrow_forward6. Benedict makes wooden chairs. Benedict and his 4 employees invest 50 hours per day making 200wooden chairs. What is their productivity? If they increase the rate by 50 per day, what would betheir new productivity? What would be their increase index in productivity?arrow_forwardDiscuss why superior efficiency is important and the many ways that different parts of the organization can help achieve it.arrow_forward
- The statement that best to describe the productivity challenge is, except. Group of answer choices a. increasing production equates to increasing efficiency. b. enhancing the outputs to inputs ratio in the manufacturing process is one of the operations manager's c. responsibilities. d. increases in production can help to raise the standard of life. e. impossible to determine whether the economy is in a downward trend.arrow_forwardWhat is a productivity Cycle? Explain it with an example.arrow_forward(b) Productivity is related with outputs and inputs. i) List ONE example of outputs and inputs each. ii) Derive the productivity Equation using outputs and inputsarrow_forward
- "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_forward1. A lawn mower manufacturer can produce 40 units in an 8-hour shift. What is the labor productivity of this operation? By hiring additional workers, this facility can produce 50 units in an 8-hour shift. What is the new labor productivity? What is the percentage of productivity gain? 2. An accounting firm can produce 8 monthly reports in three 8-hour shifts. What is the productivity of this firm? If this firm hires two additional workers, what would be the productivity of this firm? What is the percentage of productivity gain? 3. If a machine shop can produce 160 containers in one week with 4 workers (40 hours per week), what is the labor productivity? By redesigning the workflow, they can increase production to 200 containers, what would be the new labor productivity? What is the percent change in labor productivity?arrow_forward
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