Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 8P
Summary Introduction
To select: The option with higher productivity in terms of revenue per dollar of input.
Introduction: Productivity is the measure of performance of a person, machine or an organization. It is computed by dividing the average output per period by the total cost incurred or resources used in the process.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing? b) What is the multifactor productivity for these tires at Lakefront Manufacturing? c) What is 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?
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes I ,000 tires per day with the following resources: a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing?b) What is the multifactor productivity for these tires at Lakefront Manufacturing?c) What is 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?
An operation has a scrap rate of 15%. As a result, 102 sellable pieces per hour are produced.
a. How many pieces per hour are produced, including scrap? (Enter your answer as a whole number.)
b. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Enter your answer as a percentage rounded to one decimal.)
Chapter 2 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
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. 3.1CQCh. 2 - Prob. 3.2CQCh. 2 - Prob. 3.3CQCh. 2 - Prob. 3.4CQCh. 2 - Prob. 3.5CQCh. 2 - Prob. 4.1CQCh. 2 - Prob. 4.2CQCh. 2 - Prob. 4.3CQCh. 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
- In 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_forwardA property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $2 perminute. Clients are charged a fee of $400. Company A’s software would reduce the average searchtime by 10 minutes, at a cost of $3.50 per search. Company B’s software would reduce the averagesearch time by 12 minutes at a cost of $3.60 per search. Which option would have the higher productivity in terms of revenue per dollar of input?arrow_forwardChuk Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes.a. what is their productivity?b. Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 120 per day, what will be their new productivity?c. what will be their unit increase in productivity per hour?d. what will be their percentage change in productivity?arrow_forward
- Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $8 per hour. During the first week of March, each worker worked 45 hours. Together, they produced a batch of 156 garments. Of these garments, 54 were 'seconds' (meaning that they were flawed). The seconds were sold for $100 each at a factory outlet store. The remaining 102 garments were sold to retail outlets at a price of $198 per garment. What was the labor productivity, in dollars per labor-hour, at this job shop during the first week of March? Labor productivity =______ dollars/labor hour (round your response to two decimal places). Please don't just send the answer, I need to know how to do this. Thanksarrow_forwardWhite Tiger Electronics produces CD players using an automated assembly line process. The standard cost of CD players is $150 per unit (labor, $30; materials, $70; and overhead, $50). The sales price is $300 per unit.a. To achieve a 10 percent multifactor productivity improvement by reducing materials costs only, by what percentage must these costs be reduced? b. To achieve a 10 percent multifactor productivity improvement by reducing labor costs only, by what percentage must these costs be reduced? c. To achieve a 10 percent multifactor productivity improvement by reducing overhead costs only, by what percentage must these costs be reduced?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
- A caterer prepares 2,000 meals for a client’ company event consuming the following resources: Labor → 6 hours @ $20 per hour Materials → $8 per meal Beverages → $4 per meal What is labor productivity? What is the multifactor productivity? To produce 2,000 pieces of luggage, a leather goods firm spends $1,000 on labor and $500 on materials. What is productivity? If the firms can increase production to 2,200 pieces of luggage with the same labor and material cost, what is the productivity? What is the percentage change? If the labor cost is reduced to $800 and materials increased to $600, what is the productivity to produce 2,200 pieces of luggage? An accounting firm can produce 8 monthly reports in three 8-hour shifts. What is the productivity of this firm? If this firm hires two additional workers, what would be the productivity of this firm? What is the percentage of productivity gain?arrow_forwardIn December, General Motors produced 6,600 customizedvans at its plant in Detroit. The labor productivity at thisplant is known to have been 0.10 vans per labor-hour during thatmonth. 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 laborhour,how many hours would the average laborer work thatmonth?arrow_forwardMariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make two component parts A and B. To make the correct decision, the managers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for component A and B are $175 and $140 per unit, respectively. The corresponding overhead costs are $6,000 and $5,000, respectively. a. Which process, Alpha or Beta, is more productive?b. What conclusions can you draw from your analysis?arrow_forward
- Sweet Tooth Inc., a leading chocolatier, can produce 100 pounds of chocolate powder from 1000 pounds of cocoa beans in 10 hours of processing. Not satisfied with its output, the company is contemplating switching to a more automated process that would yield 200 pounds of chocolate powder from 1800 pounds of cocoa beans and take 15 hours to process. The cost of processing the $25 per hour. Cocoa beans cost $6.80 per pound. Calculate the following and show step by step breakdown. The labor productivity of the current process The labor productivity of the proposed process The multifactor productivity of the current process The multifactor productivity of the proposed process Should Sweet Tooth Inc. continue with the existing process or switch to the new process?arrow_forward1. A small furniture shop that focuses on making kitchen chairs produces 20,000 kitchen chairs annually. The shop is considering purchasing a new sanding machine; the machine will enable the workers to produce 30,000 chairs annually. Should the furniture shop proceed with the purchase of the new machine? a. Yes, the new machine would increase the labor productivity by 25%. b. Yes, the new machine would increase the labor productivity by 50%. c. No, the new machine would decrease the labor productivity by 50%. d. No, the new machine would increase the labor productivity by 25%. 2. Recently, Samsung released their latest flagship product, the S20. Which of the following best describes this technological development? a. General Purpose Technology b. New Invention c. Product Innovation d. Process Innovation 3. Moss is a casual video gamer. He is always curious on how do bots work in video games and how are they designed. Bots…arrow_forwardMerrifield Post Office is evaluating the productivity of its mail processing centers. The centers differ in the degree of automation, the type of work that can be performed, and the skill of the workers. Center 1 2 3 Pieces processed/hr 1000 2000 3000 No. of workers/hr 10 5 2 Hourly wage rate $5.50 $10 $12 Overhead rate/hr $10 $25 $50 Calculate the multifactor productivity for each center. Workers in Center 1 are scheduled to receive a 10% pay raise next month. How will that affect productivity? A new processing machine is available for Center 3 that would increase the output to 5000 pieces an hour at an additional overhead rate of $30 an hour. Should Merrifield install the new processing machine?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.