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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EBK OPERATIONS MANAGEMENT
- In December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that month. 300 laborers were employed at the plant that month.a. How many hours did the average laborer work that month?b. if the productivity can be increased to 0.11 vans per labor hour, how many hours would the average laborer work that month?arrow_forwardABC Corporation is a furniture manufacturing company working on a 40 hour per week basis makes 135 chairs. The sales price is $75 each, and the company has the following costs:• Direct materials $790• Direct labor $360• Overhead $550Required:a. Calculate the productivity of the company.b. What will be the new productivity if the company decides to make 150 chairs per week?c. If the company decides to improve productivity through materials costs reduction only, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?d. If the company repeats the same exercise as in (c) above, but through labor costs reduction, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?arrow_forwardIn the Loans & Credits department of a TD Bank branch, there are 700 loan applications per week waiting to be processed. There are currently 8 employees (each works for 7 hours a day, 5 days a week) working in the department for processing the loan applications.( a ) What is the employee productivity (in applications/hour)?( b ) Due to the current economic situation, the director of the department anticipatesthat there will be a significant increase in the number of loan applications. If there are 1960 applications per week and the director wishes to increase the employee productivity to 3.5 applications per hour, how many additional employee should be hired?arrow_forward
- Pak Andi is a director of a cake factory in the Bekasi area. To produce 900 cakes per day it takes the following things: Labor 300 hours per day @ $ 96 per hour Raw material 3 tons per day @ $ 2 per kg Energy $ 10,000 per day Capital cost $ 5,000 per day a. What is the labor productivity per labor-hour for the production of cakes at the factory?b. What is the multifactor productivity for cake production at the factory?c. If Mr. Andi wants to increase his production to 1,500 cakes per day without changingother variables, what is the productivity now?arrow_forwardLillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,200 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour 20,000 pounds per day @ $1.50 per pound $5,250 per day $10,250 per day Raw Material: Energy: Capital: a) Labor productivity per labor hour for these tires = tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires tires/dollar (round your response to four decimal places). %3Darrow_forwardIn December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a. How many hours did the average laborer work that month? b. If productivity can be increased to 0.11 vans per labor-hour, how many hours would the average laborer work that month? Please show work. Thank youarrow_forward
- T-shirts Inc. has 12 operators, and the company works 8 hours a day (8 am to 5 pm with an hour break), 7 days a week. Company is manufacturing t-shirts and standard minute value for a line to finish a t-shirt =5 minutes. Company produces 8,000 t-shirts a week. Calculate the output, input and productivity (first two answers in minutes and third as a percentage [round to 100th place]). How long will this company need to complete a client’s order for 10,000 t-shirts?arrow_forwardInc. wants to analyze its variances in its actual and budgeted operation. · There is no difference between the actual gross profit and budgeted gross profit.· The quantity of units sold is the same as the budgeted units sold.· Actual Units sold at budgeted sales price is P10,000· Actual Units sold at budgeted cost price is P8,000· Budgeted Sales is at P10,000 and the actual sales is P1,500 greater than the budgeted sales· Budgeted Cost of Goods Sold is at P8,000 and the actual Cost of Goods Sold is P1,200 greater than the budgeted Cost of Goods Sold.What is the sale price variance?arrow_forwardA manager checked production records and found that a worker produced 180 units while working 40 hours. In the previous week, the same worker produced 126 units while working 30 hours. a. Compute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.) b. Did the worker's productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 decimal places.)arrow_forward
- 1. A small furniture shop that focuses on making kitchen chairs produces 20,000 kitchen chairs annually. The shop is considering purchasing a new sanding machine; the machine will enable the workers to produce 30,000 chairs annually. Should the furniture shop proceed with the purchase of the new machine? a. Yes, the new machine would increase the labor productivity by 25%. b. Yes, the new machine would increase the labor productivity by 50%. c. No, the new machine would decrease the labor productivity by 50%. d. No, the new machine would increase the labor productivity by 25%. 2. Recently, Samsung released their latest flagship product, the S20. Which of the following best describes this technological development? a. General Purpose Technology b. New Invention c. Product Innovation d. Process Innovation 3. Moss is a casual video gamer. He is always curious on how do bots work in video games and how are they designed. Bots…arrow_forwardGeorge 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%…arrow_forwardA seed company has a design capacity of 80 metric tonnes per day. It's effective capacity, However, is 64metric tonnes per day, and it's actual output is 62 metric tonnes per day. The operations manager would like to increase the number of Metric tonnes per day. Which of the following factors would you recommend that the operations manager investigate: quality problems, absenteeism, or scheduling?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,