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Practic ch2+3

The manager tracked crew productivity over several weeks and obtained figures for carpeting installed per week. Calculations of labour productivity and conclusions about crew size and productivity can be made based on these figures. Multifactor productivity measures can also be calculated for each week that take into account labour costs, overhead costs, material costs, and standard prices to suggest overall productivity trends. Eliminating a 10% scrap rate in one operation could potentially increase labour productivity by allowing more pieces to be produced per hour. Labour and multifactor productivity rates were computed for several bank service units based on average daily customers processed, hourly wages, overhead rates, and material costs. Introducing a new procedure enabling one extra customer per employee per day would increase the expected productivity

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143 views4 pages

Practic ch2+3

The manager tracked crew productivity over several weeks and obtained figures for carpeting installed per week. Calculations of labour productivity and conclusions about crew size and productivity can be made based on these figures. Multifactor productivity measures can also be calculated for each week that take into account labour costs, overhead costs, material costs, and standard prices to suggest overall productivity trends. Eliminating a 10% scrap rate in one operation could potentially increase labour productivity by allowing more pieces to be produced per hour. Labour and multifactor productivity rates were computed for several bank service units based on average daily customers processed, hourly wages, overhead rates, and material costs. Introducing a new procedure enabling one extra customer per employee per day would increase the expected productivity

Uploaded by

wejdazo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Ch2

1. The manager of a crew that installs carpeting has tracked the crew’s output over the past several
weeks, obtaining these figures:

Compute the labour productivity for each of the weeks. On the basis of your calculations, what
can you conclude about crew size and productivity?

2. Compute the multifactor productivity measure for each of the weeks shown. What do the
productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5
times weekly labour cost. Material cost is $6 per pound. Standard price is $140 per unit.
3. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the
potential increase in labour productivity that could be achieved by eliminating the scrap?

4. The following table shows data on the average number of customers processed by several bank
service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labour cost,
and material cost is $5 per customer.

a. Compute the labour productivity and multifactor productivity for each unit

b. Suppose a new, more standard procedure is to be introduced that will enable each employee to
process one additional customer per day. Compare the expected labour and multifactor
productivity rates for each unit. For multifactor productivity assume an 8-hour day.
CH3

1. A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage
was forecast to be 88 percent of capacity; actual usage was 89.6 percent of capacity. A smoothing
constant of 0.1 is used.

a. Prepare a forecast for September.

b. Assuming actual September usage of 92 percent, prepare a forecast for October usage.

2. An electrical contractor’s records during the last five weeks indicate the number of job requests:

Week 1 2 3 4 5
Requests 20 22 18 21 22

Predict the number of requests for week 6 using each of these methods:
a. Naïve.

b. A four-period moving average

c. Exponential smoothing with α=0.30. Use 20 for week 2 forecast.


3. Air travel on Mountain Airlines for the past 18 weeks was:

a. Explain why an averaging technique would not be appropriate for forcasting.

b. Use an appropriate technique to develop a forecast for the expected number of passengers for the
next three weeks.

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