Rane Brake Lining produces disc pads for the automobile industry. With the existing brake lathe machine, the firm utilizes five employees who produce an average of eighty disc pads per hour; each of the employees receive $10 per hour; the machine cost is $40 per hour. The firm purchased a new brake lathe machine to replace the existing brake lathe machine; this reduced the labor content of the jobs needed to produce the disc pads. With the new brake lathe machine, the firm was able to shift one of the employees to another division; the machine cost increased by $10 per hour; and the production output increased by four disc pads per hour.   Calculate the labor productivity (disc pads per employee per hour) with the existing brake lathe machine, and with the new brake lathe machine. Calculate the multi-factor productivity (disc pads per $) with the existing brake lathe machine, and with the new brake lathe machine. Calculate the productivity change (%) in labor productivity, and multi-factor productivity

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question
100%

1) Rane Brake Lining produces disc pads for the automobile industry. With the existing brake lathe machine, the firm utilizes five employees who produce an average of eighty disc pads per hour; each of the employees receive $10 per hour; the machine cost is $40 per hour. The firm purchased a new brake lathe machine to replace the existing brake lathe machine; this reduced the labor content of the jobs needed to produce the disc pads. With the new brake lathe machine, the firm was able to shift one of the employees to another division; the machine cost increased by $10 per hour; and the production output increased by four disc pads per hour.

 

  1. Calculate the labor productivity (disc pads per employee per hour) with the existing brake lathe machine, and with the new brake lathe machine.
  2. Calculate the multi-factor productivity (disc pads per $) with the existing brake lathe machine, and with the new brake lathe machine.
  3. Calculate the productivity change (%) in labor productivity, and multi-factor productivity
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Optimization models
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.