Concept explainers
a)
To determine: Person LC’s productivity before and after a change in work rules.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment’s that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know the cost efficiency.
b)
To determine: The percentage increase in productivity.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment’s that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know the cost efficiency.
c)
To determine: Person LC’s new labor productivity
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment’s that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know the cost efficiency.
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Operations Management
- Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing? b) What is the multifactor productivity for these tires at Lakefront Manufacturing? c) What is the percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?arrow_forwardLillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes I ,000 tires per day with the following resources: a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing?b) What is the multifactor productivity for these tires at Lakefront Manufacturing?c) What is the percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?arrow_forwardLori Cook produces “Final Exam Care Packages” for resale by her sorority. She iscurrently working a total of 5 hours per day to produce 100 care packages.a) What is Lori’s productivity?b) Lori thinks that by redesigning the package, she can increase her total productivity to133 care packages per day. What will be her new productivity?c) What will be the percentage increase in productivity if Lori makes the change?arrow_forward
- Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. a) Calculate the labor productivity of the line. b) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 180 units per 8-hour shift. What is the new labor productivity per labor-hour? c) What is the percentage of productivity increase?arrow_forwardA caterer prepares 2,000 meals for a client’ company event consuming the following resources: Labor → 6 hours @ $20 per hour Materials → $8 per meal Beverages → $4 per meal What is labor productivity? What is the multifactor productivity? To produce 2,000 pieces of luggage, a leather goods firm spends $1,000 on labor and $500 on materials. What is productivity? If the firms can increase production to 2,200 pieces of luggage with the same labor and material cost, what is the productivity? What is the percentage change? If the labor cost is reduced to $800 and materials increased to $600, what is the productivity to produce 2,200 pieces of luggage? 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?arrow_forwardher sorority. She is currently working a total of 5 hours per day to produce 100 care packages.a) What is Lori's productivity?b) Lori thinks that by redesigning the package, she can increaseher total productivity to I33 care packages per day. What will be her new productivity?c) What will be the percentage increase in productivity if Lori makes the change?arrow_forward
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- A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburger. Current employment is i ve full-time employees who each work a 40-hour week. If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is its productivity? What would its productivity have been if it had sold the same number of sandwiches (2,100), but the mix was 700 of each type?arrow_forwardMr. ichul is a Director of a pastry factory in Bandung. To produce 350 cakes per day it takes the following things Labor : 350 hours / day @ $5 / hourRaw Material : 2 ton / day @ $1 / kgEnergy : $2,000 / dayCapital Cost : $500 / day a. What is the labor productivity per labor-hour for cake production at the factory?b. What is the multifactor productivity for cake production at the factory?c. In order to meet the needs for Eid later, Mr. ichul wants to increase his production to500 more per day than the previous cake production without changing other variables, what is the productivity now?arrow_forwardMerrifield Post Office is evaluating the productivity of its mail processing centers. The centers differ in the degree of automation, the type of work that can be performed, and the skill of the workers. Center 1 2 3 Pieces processed/hr 1000 2000 3000 No. of workers/hr 10 5 2 Hourly wage rate $5.50 $10 $12 Overhead rate/hr $10 $25 $50 Calculate the multifactor productivity for each center. Workers in Center 1 are scheduled to receive a 10% pay raise next month. How will that affect productivity? A new processing machine is available for Center 3 that would increase the output to 5000 pieces an hour at an additional overhead rate of $30 an hour. Should Merrifield install the new processing machine?arrow_forward
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