Concept explainers
A
Interpretation: the total percentage by which the costs should be reduced in order to increase the Multifactor Productivity by 10%, when only material cost is reduced is to be identified.
Concept Introduction: The multifactor productivity ratio contains the productivity of a collection of inputs involved in the production progression. This helps to identify how resourcefully an organization exploits its operational resources.
B
Interpretation: the total percentage by which the costs should be reduced in order to increase the Multifactor Productivity by 10%, when only labor cost is reduced is to be identified.
Concept Introduction: The multifactor productivity ratio comprises of the productivity of a group of inputs involved in production. This aids in identifying how resourcefully an organization exploits its operational resources.
C
Interpretation: the total percentage by which the costs should be reduced in order to increase the Multifactor Productivity by 10%, when only overhead cost is reduced is to be identified.
Concept Introduction:The multifactor productivity ratio includes the productivity of a collection of inputs elaborated in production. This benefits in identifying how resourcefully an organization exploits its operational resources.
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OPERATIONS MANAGEMENT LL PACKAGE
- Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 400 boxes. Part 2 a) Their productivity = enter your response here boxes/hour (round your response to two decimal places). Part 3 Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 500 boxes per day. Part 4 b) Their new productivity = enter your response here boxes/hour (round your response to two decimal places). Part 5 c) The unit increase in productivity is enter your response here boxes/hour (round your response to two decimal places). Part 6 d) The percentage LOADING... increase in productivity is enter your response here % (enter your response as a percentage rounded to two decimal places).arrow_forwardHokey Min's Kleen Karpet cleaned 75 rugs in October, consuming the following resources: Labor: 525 hours at $15 per hour Solvent: 120 gallons at $8 per gallon Machine Rental: 20 days at $60 per day Part 2 a) Labor productivity per dollar = 0.0095 rugs/dollar (round your response to four decimal places). Part 3 b) Multifactor productivity = enter your response here rugs/dollar (round your response to four decimal places).arrow_forward"We are already measuring total factor productivity. Measuring partial productivities would be of no value." Do you agree? A. Yes, total factor productivity is the goal of the measurement. Once achieved there is no need for further analysis. B. Yes, partial productivity measures should only be calculated if you cannot calculate total factor productivity. C. No, total factor productivity and partial productivity measures work best together because the strengths of one offset weaknesses in the other. D. No, you must always calculate partial productivity measures for the total factor productivity to have any meaning.arrow_forward
- Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,250 per day Capital: $10,000 per day a) Labor productivity per labor hour for these tires = 2.502.50 tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires = 0.02500.0250 tires/dollar (round your response to four decimal places). c) 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 = nothing% (enter your response as a percentage rounded to two decimal places). Note: calculate the new multifactor productivity to four…arrow_forwardLabor is a costly component of most OM activities. So as we have moved to computer-oriented tasks, rather than manual tasks, new tools for evaluating productivity have been developed. Now with millions of employees suddenly doing these tasks from home, more managers want to know how employees spend their time, writes The Wall Street Journal (April 20, 2020). One new technology provides the ability to install a tool that takes computer screenshots of home-based employees every 10 minutes and records how much time they spend on certain activities. It gives managers productivity scores for remote workers or detailed reports on which tasks consume their days. Other tools are designed to catch employees who might be more tempted to download files from the company or violate security rules. At Teramind, whose technology can give employers a live look at employees’ computer screens or recordings of videos of their activities, inquiries have recently tripled, and 1/3 of the company’s 2,000…arrow_forwardLabor is a costly component of most OM activities. So as we have moved to computer-oriented tasks, rather than manual tasks, new tools for evaluating productivity have been developed. Now with millions of employees suddenly doing these tasks from home, more managers want to know how employees spend their time, writes The Wall Street Journal (April 20, 2020). One new technology provides the ability to install a tool that takes computer screenshots of home-based employees every 10 minutes and records how much time they spend on certain activities. It gives managers productivity scores for remote workers or detailed reports on which tasks consume their days. Other tools are designed to catch employees who might be more tempted to download files from the company or violate security rules. At Teramind, whose technology can give employers a live look at employees’ computer screens or recordings of videos of their activities, inquiries have recently tripled, and 1/3 of the company’s 2,000…arrow_forward
- A factory produces 7,500 units of car replacement component per month which can be sold at the price of $50/unit. The monthly labor cost is $1,050, material cost is $5,200, and overhead cost is 15% of the material cost. Compute the different productivity measure you can conclude, and specify who may be interested in each measure.arrow_forwardProductivity should be a concern of every business organization.a. How is productivity defined?b. How are productivity measures used?c. Why is productivity important?d. What part of the organization has primary responsibility for productivity?e. How is efficiency different from productivity?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_forward
- Alyssa's Custom Cakes currently sells 44 birthday, 22 wedding, and 22 specialty cakes each month for $5050, $150150, and $100100 each, respectively. Alyssa's current multifactor productivity ratio is 1.351.35. Part 2 a. Assuming each cake costs the same to make, the average cost to produce a cake is $enter your response here per cake. (Enter your response rounded to two decimal places.)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: 425 hours per day @ $ 12.50 per hour Raw Material: 20,000 pounds per day @ $ 1.50 per pound Energy: $ 5,000 per day Capital: $ 10,250 per day a) Labor productivity per labor hour for these tires = enter your response here tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires = enter your response here tires/dollar (round your response to four decimal places). c) 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 = enter your response here % (enter your response as a percentage rounded to two decimal places).…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
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub