In 2018, the government of Ghana launched operation one district one factory (IDIE). Based on IDIF, Ekumfi Pineapple Factory Co. Ltd (EPF) was launched. In 2019 the management of ERF started production with 100 workers per shift, each of the three shifts working 8 hours per day. Every working day the payroll cost was GHIC 20,000 and overhead expenses amounted to GHC 5000 and material cost GHC 4000. At the end of the first year, the company produced 1,000,000 boxes of pineapple juice. During the second year, EPF acquired a loan from Exim Bank to purchase a new plant. After the introduction of the new plant, the management reduced the size of its workers per shift to 80, each working 8 hours per day, with the payroll cost reducing to GHC 18,000 and overhead expenses also reducing to GHC 4000 and material cost rising to GHC 6000. Production rose to 1,200,000 boxes. Regard yourself as the Operations Manager of EPF: a) What are the functions of Operations Managers? b) Compute the Labor productivity for the first year and that of the second year after the introduction of the new plant c) Compute Multi-factor productivity for the first year and that of the second year d Advise the management of EPF whether it is worth buying the new plant in the second year or not using the productivity levels.
Please do not give solution in image format thanku
In 2018, the government of Ghana launched operation one district one factory (IDIE). Based on IDIF, Ekumfi Pineapple Factory Co. Ltd (EPF) was launched. In 2019 the management of ERF started production with 100 workers per shift, each of the three shifts working 8 hours per day.
Every working day the payroll cost was GHIC 20,000 and overhead expenses amounted to GHC 5000 and material cost GHC 4000. At the end of the first year, the company produced 1,000,000 boxes of pineapple juice. During the second year, EPF acquired a loan from Exim Bank to purchase a new plant. After the introduction of the new plant, the management reduced the size of its workers per shift to 80, each working 8 hours per day, with the payroll cost reducing to GHC 18,000 and overhead expenses also reducing to GHC 4000 and material cost rising to GHC 6000.
Production rose to 1,200,000 boxes. Regard yourself as the Operations Manager of EPF:
a) What are the functions of Operations Managers?
b) Compute the Labor productivity for the first year and that of the second year after the introduction of the new plant
c) Compute Multi-factor productivity for the first year and that of the second year
d Advise the management of EPF whether it is worth buying the new plant in the second year
or not using the productivity levels.
Step by step
Solved in 4 steps with 2 images
