OPERATIONS MANAGEMENT LL PACKAGE
OPERATIONS MANAGEMENT LL PACKAGE
11th Edition
ISBN: 9781323592632
Author: KRAJEWSKI
Publisher: Pearson Custom Publishing
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Chapter 1, Problem 2AME
Summary Introduction

Interpretation: The revised productivity measure after the exclusion of lunch is to be identified.

Concept Introduction: A productivity measure is considered as a ratio of the total output against the single input or the total input utilized within the process of production.

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a) Last week employees at Bluegill produced 46 chairs after working a total of 200hours. Of the 46 chairs produced, 12 were damaged due to a problem with thenew sanding machine. The damaged chairs can be discounted and sold for K250each. The undamaged chairs are sold to a department store retail chain for $700each.(i) What was the labor productivity ratio for last week? (ii) If labor productivity was $150 in sales per hour the previous week, whatwas the change in labor productivity as a percentage?b) In the bakery, the design capacity is 30 pies per day and effective capacity is 20pies per day. Currently, the bakery is producing 27 pies per day. What is thebakery’s capacity utilization relative to both design and effective capacity?
“Partial productivity measures should be calculated only for high-value-added activities.” Do youagree and why or why not?
A production line completes 10 t-shirts in an hour. The SAM (standard allowed minutes or standard minute value) to complete 1 t-shirt is 5 minutes. What is the line productivity? Show your calculation & express as a percentage (100th place).
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