Chapter 2: Operations Strategy and Competitiveness: Answer

Reid & Sanders Operations Management, 5th Edition Solutions
Chapter 2: Operations Strategy and Competitiveness
1. Two workers have the job of placing plastic labels on packages before the packages are
shipped out. The first worker can place 1000 labels in 30 minutes. The second worker can
place 850 labels in 20 minutes. Which worker is more productive?
Answer:
Productivity of worker 1 = 1000 labels/30 minutes
= 33.3 labels per minute
Productivity of worker 2 = 850 labels/20 minutes

= 42.5 labels per minute
Worker 2 is more productive.
2. Last week a painter painted three houses in five days. This week she painted two houses
in four days. In which week was the painter more productive?
Answer:
Productivity in week 1 = 3 houses/5days = 0.6 houses per day
Productivity in week 2 = 2 houses/4days = 0.5 houses per day

The painter was more productive in week 1.
3. One type of bread-making machine can make six loaves of bread in five hours. A new
model of the machine can make four loaves in two hours. Which model is more
productive?
Answer:
Productivity of old model machine = 6 loaves/5 hours = 1.2 loaves per hour
Productivity of new model machine = 4 loaves/2 hours = 2.0 loaves per hour
The new model is more productive.
4. A company that makes kitchen chairs wants to compare productivity at two of its
facilities. At facility #1, six workers produced 240 chairs. At facility #2, four workers
produced 210 chairs during the same time period. Which facility was more productive?
Answer:
Productivity at facility #1 = 240 chairs/6 workers = 40 chairs per worker
Productivity at facility #2 = 210 chairs/4 workers = 52.5 chairs per worker

Facility #2 was more productive.
5. A painter is considering using a new high-tech paint roller. Yesterday he was able to paint
three walls in 45 minutes using his old method. Today he painted two walls of the same
size in 20 minutes. Is the painter more productive using the new paint roller?
Copyright © 2013 John Wiley & Sons, Inc. 2-1

Answer:
Productivity using old method = 3 walls/45 minutes = 0.07 walls per minute
Productivity using new method = 2 walls/20 minutes = 0.10 walls per minute
The painter is more productive using the new paint roller.
6. Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture
maker has recently installed a new assembly process, including a new sander and
polisher. With this new system, production has increased to 90 pieces of furniture per day
from the previous 60 pieces of furniture per day. The number of defective items produced
has dropped from 10 pieces per day to 1 per day. The production facility operates strictly
eight hours per day. Evaluate the change in productivity for Aztec using the new
assembly process.
Answer:
Using only the non-defective production, productivity has increased from (60 – 10) = 50
pieces per day to (90 – 1) = 89 pieces per day.
Change in productivity = (89 – 50)/50 × 100% = 78%

There is a 78% increase in productivity using the new assembly process.
7. Howard Plastics produces plastic containers for use in the food packaging industry. Last
year its average monthly production included 20,000 containers produced using one shift
five days a week with an eight-hour-a-day operation. Of the items produced 15 percent
were deemed defective. Recently, Howard Plastics has implemented new production
methods and a new quality improvement program. Its monthly production has increased
to 25,000 containers with 9 percent defective.
a) Compute productivity ratios for the old and new production system.
b) Compare the changes in productivity between the two production systems.
Answer:
a) Using only the nondefective production, productivity increased from (20,000 × 0.85)
= 17,000 units/month to (25,000 × 0.91) = 22,750 units/month.
b) Change in productivity = (22,750 – 17,000)/17,000 × 100% = 33.8%

There is a 33.8% increase in productivity using the new production method.
8. Med-Tech labs is a facility that provides medical tests and evaluations for patients,
ranging from analyzing blood samples to performing magnetic resonance imaging (MRI).
Average cost to patients is $60 per patient. Labor costs average $15 per patient, materials
costs are $20 per patient, and overhead costs are averaged at $20 per patient.
a) What is the multifactor productivity ratio for Med-Tech? What does your finding
mean?
b) If the average lab worker spends three hours for each patient, what is the labor
productivity ratio?

Answer:
a) Multifactor productivity = $60/($15 + $20 + $20) = 1.09
This means that the lab is charging approximately 9% over the expenses of labor,
materials, and overhead.
b) Labor productivity = $60/3 hours = $20 per hour
9. Handy-Maid Cleaning Service operates five crews with three workers per crew. Different
crews clean a different number of homes per week and spend a differing amount of hours.
All the homes cleaned are about the same size. The manager of Handy-Maid is trying to
evaluate the productivity of each of the crews. The following data have been collected
over the past week.
Work Crew Hours Homes Cleaned

Anna, Sue, and Tim 35 10
Jim, Jose, and Andy 45 15
Dan, Wendy, and Carry 56 18
Rosie, Chandra, and Seth 30 10
Sherry, Vicky, and Roger 42 18
Assuming the quality of cleaning was consistent between crews, which crew was most
productive?
Answer:
Productivity of Anna, Sue, and Tim = 10 homes/35 hours = 0.29 homes/hour
Productivity of Jim, Jose, and Andy = 15 homes/45 hours = 0.33 homes/hour
Productivity of Dan, Wendy, and Carry = 18 homes/56 hours = 0.32 homes/hour
Productivity of Rosie, Chandra, and Seth = 10 homes/30 hours = 0.33 homes/hour
Productivity of Sherry, Vicky, and Roger = 18 homes/42 hours = 0.43 homes/hour
The crew of Sherry, Vicky, and Roger was the most productive.

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Reid & Sanders Operations Management, 5th Edition Solutions

Chapter 2: Operations Strategy and Competitiveness

Productivity of worker 2 = 850 labels/20 minutes

Productivity in week 2 = 2 houses/4days = 0.5 houses per day

Productivity at facility #2 = 210 chairs/4 workers = 52.5 chairs per worker

Copyright © 2013 John Wiley & Sons, Inc. 2-1

Change in productivity = (89 – 50)/50 × 100% = 78%

b) Change in productivity = (22,750 – 17,000)/17,000 × 100% = 33.8%

Copyright © 2013 John Wiley & Sons, Inc. 2-2

b) Labor productivity = $60/3 hours = $20 per hour

Work Crew Hours Homes Cleaned

Copyright © 2013 John Wiley & Sons, Inc. 2-3

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