Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 1, Problem 7P
a.
Summary Introduction
Introduction: Labor productivity estimates the hourly worker’s output in the business and the economy of the country during a period of time. Multifactor productivity differentiates real output of managerial skill, capital and raw material. Managerial skill and capital are always considered an important contributor to the process of production. It recognizes that there may be more than one output and, it recognizes all input in the production process.
To compute: Labor and multifactor productivity ratios.
b.
Summary Introduction
Introduction: Multifactor productivity differentiates real output of managerial skill, capital and raw material. Managerial skill and capital are always considered important contributors to the process of production. It recognizes that there may be more than one output and, it recognizes all input in the production process.
To analyze: Option which has the greatest impact on multifactor productivity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A department works one 8-hour shift, 250 days a year, and has these figures for usage of amachine that is currently being considered:ProductAnnualDemandStandard ProcessingTime per Unit (hr)Processing TimeNeeded (hr)1 400 5.0 2,0002 300 8.0 2,4003 700 2.0 1,4005,800Units of capacity needed = Processing time needed ___________________________ Processing time capacity per unit (5–3)Working one 8-hour shift 250 days a year provides an annual capacity of 8 × 250 =2,000 hours per year. Consequently, three of these machines would be needed to handle therequired volume:5,800 hours __________________ 2,000
Mack’s guitar fabrication shop produces low-cost, highly durable guitars for beginners. Typically, out of the 100 guitars thatbegin production each month, only 80 percent are consideredgood enough to sell. The other 20 percent are scrapped due toquality problems that are identified after they have completedthe production process. Each guitar sells for $250. Becausesome of the production process is automated, each guitar onlyrequires 10 labor hours. Each employee works an average160 hours per month. Labor is paid at $10/hour, materials costis $40/guitar, and overhead is $4,000.a. Calculate the labor and multifactor productivity ratios.b. After some study, the operations manager Darren Funkrecommends three options to improve the company’smultifactor productivity: (1) increase the sales price by10 percent, (2) improve quality so that only 10 percentare defective, or (3) reduce labor, material, and overheadcosts by 10 percent. Which option has the greatest impacton the multifactor…
2. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a toolcosting 640Php, which will be useless after the 8,000 units are finished. The cost of the machineoperator is 10.80Php/hr. if all other costs are identical, which material is more economical?a. Aluminum, by 1,264Php cost difference.b. Aluminum, by 1,653Php cost differencec. Steel, by 640Php cost difference.d. Steel, by 1,088Php cost difference.e. None of the above
Chapter 1 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- An entrepreneur is starting up a new bakery featuring a special pastry from an old family recipe. The basic dough recipe requires 5cups of flour, which is 0.75kg, plus another 0.75kg consisting of all the other ingredients, sugar, butter, milk, yeast, fruits, nuts and spices, to make the dough for 15 medium pastries. She runs some tests to scale up her recipe. In her first test batch she creates dough for 300 pastries, how much flour, in kg, was required?arrow_forwardThe Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both rquire a certain amount of wiring and drilling. Each air condtioner takes 3 hours of wiring and 2 hours of drilling. During the next production period, 240 hours of wiring time are available, and up to 140 hours of drilling time may be used. Each air conditioner sold yieds a profit of $25. Each fan assembled may be sold for a $15 profit. Formulate the best combination of air conditioners and fans that yiedls the highest profit. Use the corner point graphical approach.arrow_forwardPlease can u answer this true and false 1. The design capacity is often lower than the effective capacity. 2. To improve efficiency firms should train employees and correct quality problems. 3. Mass Customization processes are low volume and low variety 4. Process Strategies have long-term effects on efficiency and production flexibility 5. Continuous processes are high volume but a low variety of products. 6. Modules are parts or components of a product previously prepared, often in a continuous process. 7. Effective capacity is the number of units a facility can hold, receive, store, or produce ha pers 8. Utilization is the theoretical maximum output of a system in a given period under idea conctionsarrow_forward
- A factory has two stations, station X and station Y. There are two different types of units, flow units A, and flow units B. The table below includes details about how long each unit type spends at each station: Flow Unit A Flow Unit B Station X 6 min 5 min Station Y 15 min 4 min The demand rate: Flow units A: 10 units per hour. Flow units B: 15 units per hour There are 4 machines at station X and 2 machine at station Y. What is the flow rate for unit B?arrow_forwardABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases 100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 in overhead costs, and equipment costs $600 a day to operate. 1. How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)? 2. What is the single-factor productivity for labor, per workday (8 hours)? What is the multi-factor productivity, for every dollar spent per shipping bag? ABC is deciding to make some changes. If the company buys different equipment, they expect that each bundle will only take 30 seconds to process, but equipment costs will go up to $800 a day to operate. All other factors would remain the…arrow_forwardA company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the bottleneck method,…arrow_forward
- A company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the traditional…arrow_forwardA company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the bottleneck method,…arrow_forwardA company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Question: 1. Which Process…arrow_forward
- A company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the bottleneck method,…arrow_forwardas the staff director of a new hospital, you are planning to hire cardiologists rehabilitation and infectious diseased specialists. according to recent data, each cardiology case averages $ 12,000 in revenue, each physical rehabilitation case $19,000, and each infectious diseased case, $14,000. you judge that each specialist you employed will expand the hospital caseload by about 10 patients per week. You already have 3 cardiologists and rehabilitation specialists bring in one government researched per year, while each infectious diseased specialist brings in three. Your board of directors would like your weekly revenue to be as large as possible. How many of each kind of specialist should you hire? a. State the LP in standard form, defining all variables? b. Solve the LP with the online solver and attach it. In a complete sentence, state your solution to the problem, How many of each kind of specialist should you hire? c. let's say you completely misjudged the number of patients each…arrow_forwardA company plans to produce 25,000 units in a 3-month period. The months have 22, 21, and 20 working days, respectively. What should the average daily production be?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.