Concept explainers
a)
To determine: Productivity change for Charles Lackey’s bakery in loaves per dollar and with an increase in labor cost.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
b)
To determine: The new productivity for Charles Lackey’s bakery in loaves per dollar and with an increase in investment.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
c)
To determine: The percentage of productivity change for labor and investment.
Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.
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OPEARATIONS MANAG.REV CUSTOM 2017
- A 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_forwardIf we replace the notion of “output” with “useful output” and measure productivity, the chances of discovering “Productivity Paradox” is higher in the long run. A)True B)Falsearrow_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
- White Tiger Electronics produces CD players using an automated assembly line process. The standard cost of CD players is $150 per unit (labor, $30; materials, $70; and overhead, $50). The sales price is $300 per unit.a. To achieve a 10 percent multifactor productivity improvement by reducing materials costs only, by what percentage must these costs be reduced? b. To achieve a 10 percent multifactor productivity improvement by reducing labor costs only, by what percentage must these costs be reduced? c. To achieve a 10 percent multifactor productivity improvement by reducing overhead costs only, by what percentage must these costs be reduced?arrow_forward32 - A hamburger factory produces 60,000 hamburgers each week. The equipment used costs $10,000 and will remain productive for four years. The labor cost per year is $13,500. What is the productivity measure of “units of output per dollar of input” averaged over the four-year period? 154 hamburgers/dollar 195 hamburgers/dollar 338 hamburgers/dollar 236 hamburgers/dollararrow_forwardBalanced scorecard (BSC) is a strategic management performance Metric that helps companies identify and improve their internal operations to help their external outcomes. It measures past performance data and provides organizations with feedback on how to make better decisions in due course.(a) What are the four key perspectives of Balanced Scorecard ? ps/I need long explanations for this homeworkarrow_forward
- While it is true that increased efficiency leads to increased productivity, it is also possible to fall into the efficiency improvement trap, please explain.arrow_forwardEasy Electronics produces CD players using an automatedassembly line process. The standard cost of CD players is$139 per unit (labor, $28; materials, $66; and overhead, $45).The sales price is $275 per unit. a. To achieve a 12 percent multifactor productivity improve-ment by reducing materials costs only, by what percent-age must these costs be reduced?b. To achieve a 12 percent multifactor productivity improve-ment by reducing labor costs only, by what percentagemust these costs be reduced?c. To achieve a 12 percent multifactor productivity improve-ment by reducing overhead costs only, by what percent-age must these costs be reduced?arrow_forwardThe U.S., and indeed much of the rest of the world, hasbeen described as a “knowledge society.” How does thisaffect productivity measurement and the comparison ofproductivity between the U.S. and other countries?arrow_forward
- Merrifield 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_forwardAn operation has a scrap rate of 15%. As a result, 102 sellable pieces per hour are produced. a. How many pieces per hour are produced, including scrap? (Enter your answer as a whole number.) b. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Enter your answer as a percentage rounded to one decimal.)arrow_forward9 This large business has 127 employees, 19 of whom are managers or supervisors; its reduced productivity is 19 ÷ 127 = 14.9%. Suppose the executive manager realizes that the business can accomplish the same amount of work with only 3 line managers and 9 supervisors, and lays off the others. Calculate their new reduced productivity level. (Calculate to nearest tenth of a percent.) ______________________% a. 12.2% b. 11.8% c. 10.2% d. 9.4%arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub