Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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
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Chapter 1, Problem 6P

The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work the first shift and 30 employees work the second. The contract price is $200 per uniform. Because of the Urgent need, BBBC is authorized to use around-the-clock production, 6 days per week. When each of the two shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.

  1. Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?
  2. Did the labor productivity ratio increase, decrease, or remain the same? ¡fit changed, by what percentage did it change?
  3. Did weekly profits increase, decrease, or remain the same?

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The Big Black Bird Company​ (BBBC) has a large order for special​ plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per​ week, the BBBC production process usually produces 2,400 uniforms per week at a standard cost of $140 each. 70 employees work the first shift and 28 the second. The contract price is $200 per uniform. Because of the urgent​ need, BBBC is authorized to use​ around-the-clock production six days per week. When each of the two shifts works 72 hours per​ week, production increases to 4,000 uniforms per week but at a cost of ​$144 each. The multifactor productivity level decreased for two shifts working 72 hours when compared to the level of the normal two shifts. The multifactor productivity ratio based on the normal two shifts changed by ___% as compared to two shifts working 72 hours per week.​ (Enter your response rounded to two decimal​ places.) Part 4 The labor productivity level decreased for…
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $12 per hour per employee. Each employee identifies an average of 3,400 potential leads a week from a list of 4,600. An average of 6 percent of potential leads actually sign up for the service, paying a one-time fee of $80. Material costs are $1,500 per week, and overhead costs are $9,300 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input.
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $12 per hour per employee. Each employee identifies an average of 3,400 potential leads a week from a list of 4,800. An average of 7 percent of potential leads actually sign up for the service, paying a one-time fee of $90. Material costs are $1,400 per week, and overhead costs are $8,900 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Round your answer to 2 decimal places.) Do you have any suggestions for increasing the productivity of the three employees or for this task?

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