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Assignment #2

1. John Lucy and his employees make wooden boxes. Their current productivity is 3 boxes per hour working 40 hours per day. If they increase output to 125 boxes per day while keeping hours the same, their new productivity will be 3.125 boxes per hour. 2. Lori produces care packages. Her current productivity is 20 packages per hour working 5 hours per day. If she increases output to 133 packages per day while keeping hours the same, her new productivity will be 26.6 packages per hour, a 33% increase. 3. Eric Johnson analyzes his productivity change from last year to this year. His multifactor productivity decreased by 7.8% over that time period based on dollars as the common

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Assignment #2

1. John Lucy and his employees make wooden boxes. Their current productivity is 3 boxes per hour working 40 hours per day. If they increase output to 125 boxes per day while keeping hours the same, their new productivity will be 3.125 boxes per hour. 2. Lori produces care packages. Her current productivity is 20 packages per hour working 5 hours per day. If she increases output to 133 packages per day while keeping hours the same, her new productivity will be 26.6 packages per hour, a 33% increase. 3. Eric Johnson analyzes his productivity change from last year to this year. His multifactor productivity decreased by 7.8% over that time period based on dollars as the common

Uploaded by

Jenny Chen
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Jenny Chen MGMT 3320.001 Instructor: Enrique Ramirez 01/28/2012 Assignment #2 Pages 21 & 22: Problems #1.1; #1.

5; #1.7; #1.9a.b. 1 .1 John Lucy makes wooden boxes in which to ship motorcycles. John and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity?
OUTPUT(S) INPUT(S) 120 40

Productivity

Labor productivity

Labor productivity

Answer :

Labor productivity = 3 boxes/ hour

b) John and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what will be their new productivity?
Labor productivity = 125 40

Labor productivity

3.125

Answer :

New labor productivity = 3.125

boxes/ hour

c) What will be their unit increase in productivity per hour?

Increase in productivity = 3.125

Answer : Increase of productivity = 0.125 boxes/ hour

d) What will be their percentage change in productivity? The labor productivity has increased from 3 to 3.125. The change is
3.125 - 3 3

Percentage change in productivity =

Percentage change in productivity =

0.125 3

Answer

Percentage change in productivity =

0.04166 or 4.166 %

1 .5 Lori produces Final Exam Care Packages for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Loris productivity?
100 5

Labor productivity

Labor productivity

20

Answer :

Labor productivity = 20 care packages / hour

b) Lori thinks that by redesigning the package, she can increase her total productivity to 133 care packages per day. What will be her new productivity?
133 5

Labor productivity

Labor productivity

26.6

Answer :

New labor productivity = 26.6 care packages / hour

c) What will be the percentage increase in productivity if Lori makes the change? The labor productivity has increased from 20 to 26.6. The change is
26.6 - 20 20 6.6 20

Percentage change in productivity =

Percentage change in productivity =

Answer

Percentage change in productivity =

0.33 or 33%

(CONTINUE)

1 .7 Eric Johnson (using data from Problem 1.6) determines his costs to be as follows: Labor: $10 per hour Resin: $5 per pound Capital expense: 1% per month of investment Energy: $.50 per BTU.
Last Year Units produced Labor (hours) Resin (pounds) Capital invested ($) Energy (BTU) 1,000 300 50 10,000 3,000 Now 1,000 275 45 11,000 2,850

Last Year Units produced Labor (hours) at $10 Resin (pounds) at $5 Capital invested ($)/ month Energy (BTU) at $0.50 $ 1,000 3000 250 100 1,500 4,850.00 $

Now 1,000 2750 225 110 1,425 4,510.00

Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator.

( (

1,000 4850 1,000 4,850

) ( ) (
_

1,000 4,510 1,000 4,850

) )

0.206- 0.222 0.206

-0.016 0.206

0.078 or 7.8%

Answer :

Productivity

change

0.078 or 7.8%

1 .9 David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the following resources:
Labor : Raw material : Energy : Capital cost : 400 hours per day at $12.50 per hour 20,000 pounds per day at $1 per pound $5,000 per day $10,000 per day

a) What is the labor productivity per labor-hour for these tires at Upton Manufacturing?
OUTPUT(S) INPUT(S) 1000 400

Productivity

Labor productivity

Labor productivity

2.5

Answer :

Labor productivity = 2.5 tires / hour

b) What is the multifactor productivity for these tires at Upton Manufacturing?


Output Labor + Material + Energy + Capital + Miscellaneous

Productivity =

Multifactor productivity

1000 (400*12.50)+20000+5000+10000 1000 $ 5000+20000+5000+10000 1000 $40,000 Multifactor productivity = 0.025 tires per dollar

Multifactor productivity

Multifactor productivity

Answer :

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