Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1AME
Summary Introduction
Interpretation: The rise in the productivity measure when 60 more policies are processed per week is to be identified.
Concept Introduction:
The basic measurement of the firm’s performance is called productivity. Productivity is a quantitative relationship between output produced and input resources used.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap?
A small metal shop operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts?
A.between 2 and 6 hours
B.between 9 and 10 hours
C.less than 2 hours
D.between 8 and 9 hours
E.between 6 and 8 hours
A 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?
Chapter 1 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 1 - Prob. 2DQCh. 1 - A local hospital declares that it is committed to...Ch. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Although all nine of the competitive priorities...Ch. 1 - Choosing which processes are core to a firm’s...Ch. 1 - Prob. 8DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - (Refer to Solved Problem 1.) Coach Bjourn Toulouse...
Ch. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - The Big Black Bird Company (BBBC) has a large...Ch. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - The Morning Brew Coffee Shop sells Regular,...Ch. 1 - Prob. 1AMECh. 1 - Prob. 2AMECh. 1 - If an employee is hired, what will be the weekly...Ch. 1 - Suppose that, during the summer, the company works...Ch. 1 - Prob. 1VCCh. 1 - Prob. 2VCCh. 1 - Prob. 3VCCh. 1 - Prob. 1CCh. 1 - Prob. 2CCh. 1 - Prob. 3CCh. 1 - Prob. 4C
Knowledge Booster
Similar questions
- A small metal shop operates 10 hours each day, producing 100 parts/hours. If productivity were increase 20% , how many hours would the plants have to work to produce 1000 parts.arrow_forwardA production line completes 27 blankets an hour. The time (standard minute value) to complete 1 blanket is 2 minutes. What is the line productivity? Express as a percentage. (100th place) & show your calculation.arrow_forwardChuk Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes.a. what is their productivity?b. Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 120 per day, what will be their new productivity?c. what will be their unit increase in productivity per hour?d. what will be their percentage change in productivity?arrow_forward
- 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_forwardA dressmaker manufactures fashionable clothing. In a specific week, employees worked 360 hours to produce a batch of 132 garments, 52 of which were “second” (defective), which will be sold for $ 90 each in the store for factory sales. The remaining 80 garments will be sold to retail distributors at a price of $ 200 each. What is the labor productivity ratio?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_forward
- Suppose you are a member of an improvement of productivity team of a small hotel. What suggestions would you make for increasing productivity? Discuss. Which of the strategic and operational (production/operations) decisions do you think will affect productivity? How will it affect?arrow_forwardAt Symbiotech, the output of a process is valued at $30 per unit. The cost of labor is $70 per hour including benefits. The accounting department provided the following information about the process for week 1: Units produced = 2,300, Labor ($) = 14,500, Material ($) = 22,700, Overhead ($) = 10,270. The multifactor productivity ratio for week 1 is: C. 4.76 A. 1.46 B. 0.049 D. 2.79arrow_forwardChuck Sox makes wooden boxes in which to shipmotorcycles. Chuck and his three employees invest a total of40 hours per day making the 120 boxes.a) What is their productivity?b) Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125per day, what will be their new productivity?c) What will be their unit increase in productivity per hour?d) What will be their percentage change in productivity?arrow_forward
- Sweet Tooth Inc., a leading chocolatier, can produce 100 pounds of chocolate powder from 1000 pounds of cocoa beans in 10 hours of processing. Not satisfied with its output, the company is contemplating switching to a more automated process that would yield 200 pounds of chocolate powder from 1800 pounds of cocoa beans and take 15 hours to process. The cost of processing the $25 per hour. Cocoa beans cost $6.80 per pound. Calculate the following and show step by step breakdown. The labor productivity of the current process The labor productivity of the proposed process The multifactor productivity of the current process The multifactor productivity of the proposed process Should Sweet Tooth Inc. continue with the existing process or switch to the new process?arrow_forwardA company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 20% with less material, but one additional worker required. Under the old process, five workers could produce 55 units per hour. Labor costs are $13/hour, and material input was previously $15/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?arrow_forwardWhite 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_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.