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Operations Management

This document contains a case study and homework problem about evaluating the productivity of Uber. It provides data on production, labor, capital, and energy for a small business last year and this year. It then calculates the multifactor productivity for last year (0.317 dozen/dollar), this year (0.343 dozen/dollar), and the percent change in productivity from last year to this year (8.2% increase). The document also asks questions about how Uber provides added efficiency, whether the Uber model could work in trucking, and what other industries might use the Uber model.

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Farel Abdia Harfy
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608 views

Operations Management

This document contains a case study and homework problem about evaluating the productivity of Uber. It provides data on production, labor, capital, and energy for a small business last year and this year. It then calculates the multifactor productivity for last year (0.317 dozen/dollar), this year (0.343 dozen/dollar), and the percent change in productivity from last year to this year (8.2% increase). The document also asks questions about how Uber provides added efficiency, whether the Uber model could work in trucking, and what other industries might use the Uber model.

Uploaded by

Farel Abdia Harfy
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Operations Management

1st Homework; Problem Number: 17; Case Study : Uber.

by
Fakhri Rabbani P
Farel Abdia Harfy
Faris Pusponegoro

Problem Number 17:


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 are shown at right. The data are the monthly average of last
year and the monthly average this year. Determine the multifactor productivity with dollars
as the common denominator for:
a. Last year.
b. This year.
c. Then determine the percent change in productivity for the monthly average
last year versus the monthly average this year on a multifactor basis.

Labor: $8 per hour


Capital: 0.83% per month of investment
Energy: $0.60 per BTU

Last Year This Year

Production (dozen) 1500 1500

Labor (hours) 350 hours @8 = 2800 325 hours @8 = 2600

Capital ($) 15000x0.83% = 124.5 18000X0.83%149.4

Energi (BTU) 3000 BTU @0.6 = 1800 2700 BTU @0.6 = 1620

Total Cost ($) 4724.5 4369.4


Multifactor Productivity

A. Multifactor productivity last year.


1500 dozen
= = 0.317 dozen/dollar
4724.5 dollar

B. Multifactor productivity this year.


1500 dozen
= = 0.343 dozen/dollar
4369.4 dollar

C. Percent change in productivity for last year versus this year on a multifactor basis.

0.343 𝑑𝑜𝑧𝑒𝑛/𝑑𝑜𝑙𝑙𝑎𝑟−0.317 𝑑𝑜𝑧𝑒𝑛/𝑑𝑜𝑙𝑙𝑎𝑟


𝑥 100% = 8.2%
0.317 𝑑𝑜𝑧𝑒𝑛/𝑑𝑜𝑙𝑙𝑎𝑟
Case Study : Uber

Questions:

1. The market has decided that Uber and its immediate competitors are adding
efficiency to our society. How is Uber providing that added efficiency?
2. Do you think the Uber model will work in the trucking industry?

3. In what other areas/industries might the Uber model be used?

Answers:

1. By using a smartphone app for the basic interaction between the driver and the
customer in which is much more simple and easier to operate and thus will increase
the efficiency. It is mentioned that the app can be used to:
- Make arrangement for rides
- Tracking the location of both the driver and customer
- Automatic billing for each routes as well as rides history
- Making evaluation between each driver and customer.

2. It is possible to apply similar model in the trucking industry. The difference is that in
the trucking industry, the service given is to deliver goods/objects from one or several
pickup point to each destination. Here, Uber model will increase efficiency as the
customer (in this case, the shipper) will find and locate the truckers easily. But as the
thing to be delivered here is an object (not a passenger), therefore there is a need of
additional terms and conditions in the system to ensure safety and quality controlling.

3. Package Delivery (Shipment), Air Transportation, Restaurant, Medical Assistance, Law


Firm/Police Assistance, Car Towing Service.

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