Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 2P
Summary Introduction
To determine: The labor productivity and on that basis make conclusion about the crew size and productivity.
Introduction: Competitiveness, strategy making and productivity are three crucial aspects for a firm to withstand and succeed in present competitive business environment. These elements are interrelated which must be handled efficiently in order to attain competitive edge.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures:
Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity?
The manager of a crew that installs wood floors has tracked the crew’s output over the past several weeks. Each worker works 40 hours per week, and earns $22 per hour. The wholesale cost of lumber to the company is $9 per square foot, and the company charges its customers $25 per square foot of flooring installed. Overhead rate is 100%
a) using the best formula to determine labor productivity, calculate labor productivity for each of the weeks
b) calculate multifactor productivity for each week using the dollar revenue of flooring installed in the numerator
week
crew size
lumber used
flooring installed
week 1
4
480
420
week 2
3
371
325
As part of the Department of Labor Statistics, you are assigned the task of evaluating the improvement of small businesses. Data for one of the small businesses are shown below. The data are monthly average of last year and monthly average of this year.
Last Year
This Year
Production (dozens)
1,500
1,500
Labor (hours)
350
325
Capital Investment ($)
15,000
18,000
Energy (BTU)
3000
2700
Labor: $10.00/hr.
Capital: 6% per month of Investment
Energy: $0.75 per BTU.
Determine the labor productivity in labor dollars for last year and this year.
Determine the multifactor productivity for last year and this year.
Determine the percentage change in productivity for last year versus this year.
Chapter 2 Solutions
Operations Management
Ch. 2.7 - Prob. 1.1RQCh. 2.7 - Prob. 1.2RQCh. 2.7 - Prob. 1.3RQCh. 2.7 - Prob. 2.1RQCh. 2.7 - Prob. 2.2RQCh. 2 - Prob. 1DRQCh. 2 - List the key ways that organizations compete.Ch. 2 - Prob. 3DRQCh. 2 - Prob. 4DRQCh. 2 - Prob. 5DRQ
Ch. 2 - Contrast the terms strategies and tactics.Ch. 2 - Contrast Organization and operations strategy.Ch. 2 - Prob. 8DRQCh. 2 - Prob. 9DRQCh. 2 - Prob. 10DRQCh. 2 - Prob. 11DRQCh. 2 - Prob. 12DRQCh. 2 - Prob. 13DRQCh. 2 - Prob. 14DRQCh. 2 - Prob. 15DRQCh. 2 - Who needs to be involved in formulating...Ch. 2 - Prob. 2TSCh. 2 - Prob. 3TSCh. 2 - Prob. 1CTECh. 2 - Prob. 2CTECh. 2 - Prob. 3CTECh. 2 - Prob. 4CTECh. 2 - Prob. 5CTECh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - A company offers ID theft protection wing leads...Ch. 2 - Prob. 1.1CQCh. 2 - Prob. 1.2CQCh. 2 - Prob. 1.3CQCh. 2 - Prob. 2.1CQCh. 2 - Prob. 2.2CQCh. 2 - Prob. 2.3CQCh. 2 - Prob. 2.4CQCh. 2 - Prob. 2.5CQCh. 2 - Prob. 2.6CQCh. 2 - Prob. 2.7CQCh. 2 - Prob. 1OTQCh. 2 - Prob. 2OTQCh. 2 - Prob. 3OTQCh. 2 - Prob. 4OTQCh. 2 - Prob. 5OTQCh. 2 - Prob. 6OTQCh. 2 - Prob. 7OTQ
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
- Which one is NOT an index of Productivity?(A) Man-hour output(B) Productivity ratio(C) TQM(D) Use of Financial Ratiosarrow_forwardThe manager of a crew that installs carpeting has tracked the crew’s output over the past severalweeks, obtaining these figures:Week Crew Size Yards Installed1 4 962 3 723 4 924 2 505 3 696 2 52Compute the labor productivity for each of the weeks. On the basis of your calculations, what canyou conclude about crew size and productivity?arrow_forwardHandy-Maid Cleaning Service operates fi ve crews withthree workers per crew. Diff erent crews clean a diff erent numberof homes per week and spend a diff ering amount of hours. All thehomes cleaned are about the same size. Th e manager of Handy-Maid is trying to evaluate the productivity of each of the crews.Th e following data have been collected over the past week. Work Crew Hours Homes CleanedAnna, Sue, and Tim 35 10Jim, Jose, and Andy 45 15Dan, Wendy, and Carry 56 18Rosie, Chandra, and Seth 30 10Sherry, Vicky, and Roger 42 18 Assuming the quality of cleaning was consistent betweencrews, which crew was most productive?arrow_forward
- In a furniture manufacturing factory, employees assembled an average of standard dining chairs per five-day week. Which one of the following is closest to the labor productivity of this operation (chairs/worker/day)? Select one: a. 17 b. 11 c. 14 d. 10arrow_forwardA catering company prepared and served 300 meals at an anniversary celebration last week usingeight workers. The week before, six workers prepared and served 240 meals at a wedding reception.a. For which event was the labor productivity higher? Explain.b. What are some possible reasons for the productivity differences?arrow_forward2. A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and the two employees worked 6 hours a day. (a) What was their raw material and their labor productivity with the standard equipment? (b) What is their raw material and their labor productivity with the larger machine? (c) What is the change in each productivity measure?arrow_forward
- In December, General Motors produced 7,500 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.14 vans per labor hour during that month. 340 laborers were employed at the plant that month. a) In the month of December the average number of hours worked per laborer =hours/laborer (round your response to one decimal place).arrow_forwardSud and Duds Laundry washed and pressed the followingnumber of shirts per week: a. Calculate the labor productivity per hour for each week.b. Explain the labor productivity patter exhibited by the data.arrow_forwarda cleaning company uses $20 of chemical ,$50 of labor and $10 misc expenses for each house it cleans. After some quality complaints the company has decisded to increase its use of chemical by 10%. by what percentage has multi factor productivity fallenarrow_forward
- As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year. Labor: $8 per hour; Capital: 0.843% per month of investment; Energy: $0.60 per BTU. LAST YEAR THIS YEAR Production (dozen) 1,500 1,500 Labor (hours) 350 325 Capital investment ($) 15,000 18,000 Energy (BTU) 3,000 2,700 a) Determine the multifactor productivity with dollars as the common denominator for last year. The multifactor…arrow_forwardIn December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a. How many hours did the average laborer work that month? b. If productivity can be increased to 0.11 vans per labor-hour, how many hours would the average laborer work that month? Please show work. Thank youarrow_forwardMunson Performance Auto, Inc., modifies 375 autosper year. The manager, Adam Munson, is interested in obtaininga measure of overall performance. He has asked you to providehim with a multifactor measure of last year's performanceas a benchmark for future comparison. You have assembled thefollowing data. Resource inputs were labor, I 0,000 hours; 500suspension and engine modification kits; and energy, 100,000kilowatt-hours. Average labor cost last year was $20 per hour,kits cost $ 1,000 each, and energy costs were $3 per kilowatt-hour.What do you teU Mr. Munson?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning