George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last YearNowCost Per Input UnitUnits Produced 1,2001,200 Labor (hours)280255$10per hourResin (pounds)5045$6per poundCapital Invested ($)10,00011,0002%per monthEnergy (BTU)3,0002,850$0.50per BTUThe percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator =nothing%(enter your response as a percentage rounded to two decimal places).

productivity refers to an index that can be used by an organization to measure the outputs relative…

Answered: he percent change in productivity for…

he percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = nothing%

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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Concept explainers

Overall Equipment Effectiveness

Overall equipment effectiveness or OEE as it is known can be defined as a widely standard to measure manufacturing productivity. In other words, it can also be defined as the exact percentage of time which is productive. If the score of overall equipment effectiveness is 100%, it is an indication that only good parts are being manufactured with no stop time. Hence OEE of 100% means 100% quality, performance & also availability.

Question

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year:

	Last Year	Now	Cost Per Input Unit
Units Produced	1,200	1,200
Labor (hours)	280	255	$10 per hour
Resin (pounds)	50	45	$6 per pound
Capital Invested ($)	10,000	11,000	2% per month
Energy (BTU)	3,000	2,850	$0.50 per BTU

The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator =

nothing%

(enter your response as a percentage rounded to two decimal places).

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