Chapter 1, Problem 1? [1] 20zooKmans Show allsteps CRE 5¢ Problem ‘Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total ot 40 nours per day making ihe 120 boxes, a) What is their procuctivity? ) Chuck and his employees nave lscussec redesigning the process to improve emiciency. It they can increase the rate to 125 per day, what will be their new productivity? ‘¢) What will oe thelr unit nerease in productivity per nour? {0} What will be thelr percentage change in productiviy? Step-by-step solution Step 1018 A Productivity is the evidence that compute output relative to the input used to produce it. Itis usually represented as the ratio of output to input. Caleulate Proauetivity using the following termula: Units produced Labour productivity =- Proc y Trput used Here, units produced refer to goods and senvices; Input used refers to raw materials, labor tore, energy and other resources, Productivity can be measured in two aspects: ‘Single-factor productivity is used when only one —resource is measured. Determine the Sinale- factor productivity by way of using following formu 5 Units produced Sinale-factor productivity = Units produced " " "> Tabor-hoursused Multifactor productivity is used to indicate the ratio of goods and services produced to many or all resources. Determine the Multifactor productivity by way of using folowing formula Output Multifactor productivity = Wiietor productivity 7 bor +Material +Energy + Capital +Miscellaneous Comment Step 2018 A a. Calculate productivity as shown below: Here, 120 refers o the output Le CS makes 120 Doxes per day and 40 nours refers tothe Input ie. Labor hours per aay. _ Units produced Tnput used ___120boxes Ohours per day Productivity Hence, te productivity is [3] boxes per day. comment stepaors ~ » Calculate naw productivity as shown below: Here, 125 refer to the output ie. 2s CS increases the boxes from 120 to 125 bexes per day and 49 nours refers to the Input Le. Labor hours per day. __ Unitsproduced Inputused 125 boxes 40 hours per day 3.125 New Productivity Hence, the new productivity is [3,125] boxes per day. Comment step 4ois ~ Determine the unit increase in productivity per hour as shown below: Here, original productiviy Is 3 boxes per day New produeiiviy is 3.125 boxes per day Increase in productivity = New productivity -Orignal productivity 125-3 Hence, one can see that there is an Increase for boxes per hour. Comment step sors © a Determine the percentage change in productivity as shown below: ~0041667 comment step ors ~ 5 041667100 37%] ‘Tneretore, the percentage enange in produetwvity's [3.3%] oa ‘allahcough | forerebiessChapter 1, Problem 2P [| *4Boolmarss Show al'steps: CRED 5Y Problem Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shit. a) Calculate the labor productivity ofthe line. b) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 180 units per &-hour shift. What is the new labor productivity per ‘abor-hour? c) What is the percentage of productivity increase? Step-by-step solution step 1013. 4 Consider the following data: Input =10personassembly ine =10 persons x 8(Sinceitsa8 hoursshift) =80 labor hours Output =160 valves Comment Step 2013 A a Determine the labor productivity of the line as shown below: Labour productivity is evidence that compute output relative to the input used to produce it Its, usually represented as the ratio of output to input. Calculate labour productivity using the following formula: Output Labourproductivity = Input Here, output refers to 160 valves produced Input refers to 80 labor Output Input _ 160 valves 80 valves per labor hour| Hence, the labor productivity of the line is. [2valvesperlaborhour] - Labourproductivity = Determine the new labor productivity per labor hour as shown below: Here, Input =10person assembly line (Opersons»8(Since its a8hoursshift) =80 labor hours Output(Increased ) = 16010180 valves Therefore, New labour productivity= meat Input 180 valves ‘atvaes 2.25 valvesper labor hour, Hence, the new labor productivity of the line is [2.25 valves perlabor hour| Comment Step3or3 A ce Determine the percentage of productivity increase as shown below: vere, > Productivity at 160 units is 2 valves per labor hour Productivity at “80units is 2.25 valves per labor hour Therefore, Increased percentage intheprodvetvty=| No™ Hborproductivty— sbor produsvity |, gy FF Tabor producivity 2 Walihvough 5 0 for preblem “Bho 0.125.100 12.5%] Hence, the increased percentage of productivity is {12.5% .Chapter 1, Problem 3P [1] 11 Bookmarks Show all steps: (EN SZ Problem ‘This year, Donnelly, Inc. wil produce 87,600 not water heaters at its plant in Delaware, in order to meet expected global demans. To accomplish this, each taborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor-hour, how many laborers are employed at the plant? Step-by-step solution Step 1of2 ‘The known data about the motion study is given below: «Total yearly production is 57,600 units, + Labor productivity is 0.15 units per labor hour + Available labor hours = 160 hours per labor per month Comment step 2012 Calculate the number of laborers required to meet the production target, using the following tormula as shown below: > Yearly Production Yearly output of onclabor Yearly Production Labor hours per month Productivity x No.of months ina year Laborers required 57,600 160 0.1512 o watehreugh | ‘The company employed 200 laborers, to meet the target production level of 67,600 units. "===" Problem Lori Cook produces ‘Final Exam Care Packages’ for resale by her sororiy. She is curently workang a total ot 5 nours per day to proauce 100 care packages, 2) What fs Lorts productivity? ') Lon thinks that oy redesigning ine package, she can increase ner total procuctivty 19 199 care packages per day What will be her new productivity? ©) What willbe the percentage Increase in productnity i Lon makes the change? Step-by-step solution Step tora Certain changes in the process of doing a job can improve the productivity. Things that can help in doing 50 ar: + Use of atest technotoay: + Use of skites worrtorce: + Use of best qualty products Comment Step zona Consider the folowing detais to produce exam cate packages by person L: Hours taken = 5 hours per day Packages produced = 100 ») Determine L's productiity as shown below: Units produced __ Taput used (labor hours) 100 packages 5 hours 0 packages per hour “Thus, L's productiviy is 20 packages per nour. Comment Stepacra ~ » Determine the new productiviy If production is increased to 133 packages per day as shown below: Productivity = -—Units produced —_— Input used (labor hours) 133 packages S hours 6.6 packages per hour “Thus. U's productiviy Is 26.6 packages per nour Comment step sot A > ° Determine the percentage increase in productivity as shown below: New productivity ~ Old productivity Percentage inerease in the productivity = . Productivity ‘Old productivity 100 Hence, the productivity will increase by 23% if the output is increased from 100 to 133 packages.Chapter 1, Problem 5P_ [| 19Beokmarks Show all steps: CEE SZ Problem George Kyparisis makes bearing balls in his Miami plant. With recent increases in his costs, he has a newfound interest in eMficiency. George Is Interested in determining the productivity of his ‘oraaniation. He would lke to know’ if his organization is maintaining the manufacturing average ‘of 3% increase in productivity per year? He has the following data representing a month from last year and an equivalent month this year Last Year| Now Units producee 1,000 | 1,000 Labor (ncurs) 00 | ars Resin (pounds) so | as Capital invested ($)] 10,000 | 11,000 Energy (BTU) 2,000 | 2.860 ‘Show the proauctwtty percentage change for each category and then determine the improvement {for labor-hours, the Iypical standard for comparison. Step-by-step solution Step tore Productivity refers to an index that can be used by an oraanization to measure the outputs relative to the organizational inputs. Foumula used to calculate producitvty is given below Productivity = 2 Here, output would include the goods or services produced by @ company and ingut would Include the labour, materials or other resources. Comment stepzore © ‘Computation of productivity per labor hour: Particulars |Last year| Now Units producea|+,c00 | 2,000 Lavornours) | 300 ars ‘The labor productivity calculation is shown below: _Units produced _ 1000 Tabor hours 300 Units produced _ 1000 Labor hours 275 Last year: Labor Producti Now : Labor Produc “Theretore, Percentage increase in productivity “Therefore, the perceniage increase in productivity is 8. Comment stepsors ~ Using the above formula, determine the resin productivity per pound. Computation of productivity per pound of Resin: Patioulars Last yar | Now Unts proaucecia) 1.000.000 Catal imestes (0 so fas Resin proquetay per Pouna eo)|20 | 22.22 Therefor, Percentage incest in productivity per pound af Resin =2222=20, 99 <0.1itxi00 “Therefore, ihe percentage Increase in produciiviy per pounc of resin Is 11.1% Comment Stepacie ~ ‘Computation of productivity per Capital invested: Particulars Last year | Now Units produced) 1,000 | 1,000 Capital Invested (0) 10.000 | 11,000 Productivity per $ of Capital invested (a>) | 0.1 0.09 Theretore, Percentage inerease in productivity per capital invested x10 0.09-0.1 1 “Therefore, the percentage increase in productivity per captal invested is -10.0%.Step 5016 ~ Computation of productivity per unit of Energy consumed: Particulars Lastyear | Now Units produced(a) 1,000 | 1,000 Capital Invested (b) 3,000 | 2,850 Resin productivity per Pound(2/b) | 0.33 0.35, 7 33 Percentage increase in productivity per unit of energy consumed = ——>—=="»100 33 = 0.057100 =[6.1% (rounded) Therefore, the percentage increase in productivity per unit of energy consumed is 6.1%, Comment Step 6016 A Percentage change for each category is given below: Percentage change Labour (hours) | 9.3% Resin (pounds) | 11.1% Capital invested (8) | 10.0% Energy 6.1% From the above table, itis seen that his organization is maintaining an average increase of 3% in each category except capital invested. ondChapter 4, Problem 6P [| 14Boormanss Show all steps: (ND Problem George Kyparisis (using data from Problem) determines nis costs to be as follows: + Labor $10 per hour + Resin: $6 per pound + Copital expense: 1% per month et investment + Energy: $.90 per BTU ‘Show the percent change in productivity for one month last year versus one month this year, on a ‘multifactor basis wih dollars as te common denominator. Probiem George Kyparisis makes bearing balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. Georce Is interested in determining the productivity of nis, ‘organization. He would like to know It his organization Is maintaining the manuracturing average of 3% increase in productivity per year? He has the following data representing a month from last year and an equivalent month this year Last Year| Now Units produced 1,000 | 1,000 Labor (nours) 200 | 275 Resin (pounds) 50 45 Capital invested (8) 10,000 | 11,000 Energy (8TH) 3.cco | 2.850 ‘show tne productivity percentage change for each category and then determine the improvement for labor-hours, the typical standard for comparison. Step-by-step solution Step tors A Productivity Is now ericient a process is. It gives an estimate about the output for each unit of Input usec. Based on the number of factors used, there are two ypes of productivity 1. Single-factor Productivity: When only one resource or Input is used to calculate the pprocuciivity. 2. Multi-factor productivity: When two or more resources are used fo calculate the productivity. Comment Step 2ot5 ~ ‘Consier the costs and data oven as shown below : Resource Cost Labor (per hour) $10 Resin (per pound) $5 Capital Expense 1% (per month) Energy (per BTU) $0.50 Last Year Now Units Produced 1,000 1,000 Labor (hours) 300 275 Resin (pounds) 50 45 Capital Invested ($) 10.000 11,000 Energy (BTU) 3,000 2.850 comment Stepsor5 ~ ‘Compute the productivity in dollars, as shown below: A B ep) E F 1 Productivity 2 Last Year Now Cost Last Year ‘Now 3 Units Produced 1000 1000 4. Labor (hours) 300 275 10 =Ba*sDS4 5 Resin (pounds) 50 455 BS*SDS5, 6 Capital Invested ($) 10000 11000 0.01 =B6*SDS6 7_Energy (BTU) 30002850 0.5 =B7*SDS7 8 Total “The productivity values are as follows: A B al D E F 1 Productivity 2 Last Year Now Cost Last Year Now 3. Units Produced 1,000 1,000 4 Labor (hours) 300 275 $10 3,000 2,750 5 Resin (pounds) 50 45 $5 250 225 6 Capital Invested ($) 10,000 11,000 1% 100 110 7 Energy (BTU) 3,000 2,850 $0.50 1,500 1,425 8 Total ‘Thus, the total procuctivity cost (one month) last year was $4,850 and this year Is $4,910. comment stepacts ~ .28 shown below: Output units) Mulifiactor Productivity ®) 000 units 850 balls per dolar Multifactor Productivity = Multifactor productivity last year 1,000 units 34,510 balls per dollar Multifactor productivity now =Step 5015 A Now, calculate the percentage change in productivity. as shown below Percentage change in productivity= 2222—0.206 ee change in v9.06 2016100 0.206 [7.77%| ‘Thus, the percentage change in productivity for one month last year versus one month this year is 7.77%. 100nN Problem Hokey Min's Kien Karpet cleaned 65 rugs in October, consuming the following resources: LePicture + ‘a) Wat Is tne labor productwty per dollar? b) What is he muttitactor procuctivity? Step-by-step solution step 10 Labour productivity basically refers to the measure of economic growth with a country. It measures the amount of gooos and services produced by one nour of labor. Multifactor productivity ratio basically refers 10 the output per unit of a combined set of Inputs. ‘The inputs under this definition basically refer to items such as labor, capital, and anc intermediate units, Comment step 201 HIVKK cleaned 85 rugs during October. The utilization of resources was as given below: Prepare table as shown below in an Excel sheet [RESOURCE [UNIT [COST PER UNIT [QUANTITY] TOTAL COST| tLaber {How 313, 520, [Solvent [Gallon| 35 100 [Machine rental [Day $50 20 Comments (1) Step Sor? A Enter formula in Column E as below: 2 - & | =c2*D2 A 8 c D E 1 |RESOURCE [UNIT |CosT PER UNIT | QUANTITY[TOTAL Cost 2 [Labor [How 113 [520 CoD? 3 Solve |Gallon [5 100 [=C3*D3 4. Machine rental [Day [50 [20 ECrpe Comment Step sory A Resultant tinal sneet 16a below [RESOURCE [UNIT [COST PER UNIT [QUANTITY|TOTAL CosT| [Labor [Hoo a3 520 36.760 [Seleest [Gallon 35 300 5500 [Mactine rental [Day 350 20 31,000 Comment step 50 a Calculate Labor productivity using the formula for Single- Factor Productivity Labor Productivity = Total units produced 85 ups S20 hours an = [0.1635 rugs per labor hour] Labor Productivity = Comments (1) step 6 of T “Therefore, '0 calculate the labor productivity per dollar, the cost oF labor should be calculated and then the productivity per labor dollar should be computed. ‘Therefore, ‘rom 1-1 above, the Labor productivity is 0.1836 rugs per labor hour. Theretore: One labor hour cleans 0.1635 rugs +. $13 is the labor cost for cleaning 0.1635 nugs 0.1635, S13 Hence, the labor productivity per dollar is 0.0126. Dellar labor cost productivity = [0.0126 rags per labor dollar! Comment b Calculate multifactor productivity by using the formula shown below: Multi-factor productivity = ————_____Output___ Cost of (Tabor + Material + Energy > Finanes + Mise.) 5 rugs Multi-factor productivity = 85 rugs ‘Cost of (Labor + Solvent + Machine rental) 86,760 + § 500 + $1,000 Hence, the multi-taeter productivity Is 0.011.rugs per dollar InputChapter 1, Problem oP 1] t2800imans — snowallsteps: CN Problem Liltan Fok is president of Lakefront Manufacturing, @ producer of bicycle tires. Fok makes 1,000 tres per day whin tne following resources: Labor: 400 hours per cay @ $12.50 per hour Raw material: | 20,000 pounds per day @ $1 per pound Energy: 139,000 per cay Capital costs: | $10,000 per aay ‘@) What Is the lapar procuctivity per labor-hour Tor these tires at Laketront Manufacturing? b) What is the multifactor productivity for these tires at Lakefront Manufacturing? ©) What is the percent change in multifactor productivity if Fok can reduce the energy bill by '31,000 per day without cutting production or changing any other inputs? Step-by-step solution step tors ~ Productivity is the evidence that compute output relative to the input used fo produce it tis usually represented as the ratio of output to input. Calculate Productivity using the following formul Units produced Inputused| Here, units produced refer to goods and services: Input used refers to raw materia's, labor force, energy and other resources, Productivity can be measured in two aspects: Labour productivity ‘Single-factor productivity is used when only one ~resource is measured. Determine the Single- factor procuctivity by way of using following formula: Units produced Labor-hours used Single-factor productivity Multifactor procuetivity 's used to Indicate tne ratio of goods and services procucea to many or all resources. Determine the Multifactor productivity by way of using following formula Output Labor +Material+Energy + Capital *Miscellancous Multifactor productivit Comment step2ors A Calculate single-tactor productivity per labor for tires at LK manufacturing: Here, 1,000 refers to the cutput Le. LK makes 1,000 tires per day and 400 refers to the input Le. Labor nours per day. Units produced Labor-hoursused 1,000 400 zs Labour produetivit Hence, single-tactor productivity per labor-hour for the tires at LK manutacturing is [2.5 tires per hour. Comment stepaors ~ b Calculate Multifactor productivity for the tires at LK manufacturing as shown below: Multifactor productivity Output Labor “Material "Energy + Capital Miscellaneous, 00 (400 hours/dayx12.50/ hour) + (20,000 pounds /dayt pound) +($5,000/day) +($10,000/day) 1,000 1,000 20,000 Hence, Multifactor productivity for the tires at LK manufacturing is [0.025 tires perdollar] « comment Step 4 ors ~ Determine the percent change in multifactor productivity as shown below: Here, Reduce energy is $1,000 Now, determine the new multifactor productivity By way of subtracting the energy $1,000 from the input as shown below: ‘Output Labor + Material “Energy + Capital +Miscellaneous 1,000 (Goo hours/day 12,507 hour) + (20,000 pounds / day 1/pound) +(85,000/day) +($10,000/day) 000 (G.000) + (20.000) + (5, 000— < 1,000 39,000 New Multifactor productivity 000) +10,000) Hence, new multifactor productivity for the tires at LK manufacturing is [0.02564 tires perdoliar] .Step 50f5 A Hence, determine the percentage change as shown below: (New multifactor productivity-Orginal multifactor productivity ) Orginal multifactor productivity _0.025641-0.025 Percentage change =- 0.025 0.000641 cot 0.025 for) =0.02564 = 0.02564%100 = [2.564%] Therefore, the percentage change is [2.564%] .Problem Brown's, a local bakery, Is worrled about increased costs—pariculany energy. Last years records can provide a Fairly good estimate of ihe parameters for this year. Wende Brown, the ‘oviner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery's ovens to make them more energy efficient. The modifications were Supposed to make the ovens at least 15% more efficient. Brown has asked you ta check the energy savings of the new cvens and also to look over other measures of the bakery’s productivity o see ithe modifications were beneficial. You have the following data to work wi Last Year| Now Production (dozen) | 1,300 | 1,500 Labor (nours) a0 | 325 Capital investment ($) | 15.000 | 18,000 Energy (@TU) 2.000 | 2.750 Tan votre ‘Step-by-step solution Step tore Certain changes in the process of doing a job can improve the productivity. Things that can help in doing so are + Use of latest technology: + Use of skilled workforce; + Use of best quality products, Comment step 2016 ‘The specifications of the B’s bakery are given ss shown below: Last Particulars year Now Production(dozen) 1,500 [1,500 ‘Labor 350 325 Capital investment 15,000 __| 18,000 ‘Energy(BTU) 3,000 | 2.750 Determine whether the modifications have made the oven more efficient or not as shown below: Step 1: Calculate the change in energy productivity in both the years as shown below: Note: There are 12 unis ina dozen. 1e. 1,500 dozens ~ 1,500%12 units Output Input 50012 units 3,000 = (6 units /BTU Output “Tnput 1,300%12 “2.750 = [635 unis BTU] Last year Energy Productivity Now, Energy Productivity = Comment Step sore A Determine the percent increase in the energy productivity as shown below: Percentage change in energy productivity = Ne* Productivity “Ol productivity. yy (Old productivity 655-6.00,. 69 6.00 = (17 ‘Therefore, the energy productivity is increased by This is less than 15% benchmark, [Hence, the changes did not increase the efficiency of the oven as expected] Comment Step sora A Determine the impacts on other factors as shown below: Step 2: Calculate the change in labor productivity in both the years as shovm below: 1.500412 Last year:Labor productivity = "500*12 st yearLabor produtivity = "SP un Now:Labor productivity — = S500212 325 [55.38 units/labor hour|Step 5016 Determine the percent increase in the labor productivity as shown below: New productivity ~ Old productivity 9, Old productivity 55.38-S1.42 “Sra =|7.67%| Percentage change in labor productivity = 0 100 ‘Therefore, the labor productivity is increased by [7.67%] Comment Step 6 ofs A ‘Step 3: Determine the change in production in both the years as shown below: ‘The production remained same in both the years. Therefore, no percent change is there. Thus, it can be said that overall the average efficiency did not meet the benchmark of 15% because all the increases in various productivity are below 18%. Problem Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is Interested in obtaining a measure of overall performance. He has asked you to provide nim with ‘a multifactor measure of last year's performance as a benchmark for future comparison. You have assembled the following data. Resource inputs were labor, 10,000 hours; 500 suspension ‘and engine modification Kits; and energy, 100,000 kilowatt-hours. Average labor cost last year was $20 per hour, kits cost $1,000 each, and energy costs were $3 per klowatt-hour. What do you tell Mr. Munson? Step-by-step solution Step 1012 A 8013-1-11P AID: 1604 | 23/05/2012 RID: 1088 | 08/08/2012 Computation of multifactor cost: Particulars Last year Labor(10,000 hours x $20) | $200,000 Modification kits (600 x $1,000) | $500,000 Energy(1,00,000 kw hours x $8) | $00,000 Total ‘$1,000,000 Comment Step 2072 A Computation of multifactor productivity: Multifactor productivity for last year = 0.000975 autos per dollar. Hence, | would provide Mr. Peter Cunningham, the last year’s productivity as 0.000375 autos per dollar, based on my above calculations.Problem Lake Charles Seatood makes 500 wooden packing boxes for fresh seafood per day, working In two 10-hour shits. Due to icreasec Gemana, plant managers have cecided to operate three B- our shifts instead. The plant Is now able to produce 650 boxes per aay. '8) Calculate the company’s productivity before the change in work rules and after the change 'p) What Is the percentage increase in productivity? ©) If production Is increased 10 700 boxes per day, what is the new productivity? Step-by-step solution Step 1016 Productivity |s the evidence that compute output relative fo the Input used to procuce i. It's. Usually representea as the ratio of output to Input Calculate Productivity using the following formula: Units produced Labour productivity =: p Yo" Inputused Here, units produced refer to goods and services; Input used refers to raw materials, labor force, energy and other resources. Productivity can be measured in two aspects: \gle-factor productivity is used when only one —resource is measured. Determine the Single- actor productivity by way of using following formuta: Units produced Tabor-hours used Single-factor productivity = Multifactor productivity is used 10 indicate the ratio of goods and services procuced to many or all resources. Determine the Multifactor productivity by way of using following formula Ourpur jerey + Capital Miscellaneous Multifactor procctivity = Comment step 20re Determine company proguctivity before the change in work rules anc after the change as ‘shown below: Unitsproduced Tabor-hours used 500 210 500, “20° (25 Boxes per hour] ‘Therefore, productivity betore change is [25 boxesperhour] - Productivity before change= Productivityaiter change= perhour ‘Therefore, productivity after change is [2708333 boxes per hour] - comment step sore Be. Determine the percentage increase in the productivity az shown below: Productivity rateafter change Productivity rate beforechange Productivity 8333-25 100 ntage inereasein the productivity= ‘ebefore change 100 ‘Therefore, the percentage increase in the productivity is . Comment step sors ~ (Consider if procucton is incteased to 700 boxes per day, then Getermine tne new productvity in two diferent scenarios as f IS not mentioned wnetner ine labor is Increased or not Case 1: When the plant decided to operate in two 10-hour shift then the new productivity is as follows Units produced Tabor-hours used 700 New Productivity: 3-10 700 20 35 boxes perhour| comment step Sorc “Therefore, the new productivity when the plant decided to operate in two 10-hour shift is . Comment ‘case 2: When the plant decided to operste in three 8-hour shift then the new productivity Is as follows aww Productiviey-—_Unitsproduced New Productivity 7 oyer-hours used 700 Bee 700 a4 29.16667 boxes per ‘Therefore, the new productivity when the plant ceciced to operate In three 8-hour shirt is, [29.16667 boxes per hour)Problem Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and ‘excellent location, demand has increased by 29% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. If tne bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will Lackey need to add? (Hint: Each worker works 160 ours per month.) Step-by-step solution step 1014 Labor productivity is the ratio total output by the total hours per workers. It effects the total production of tne company or plant, Comment, Step 2014 Consider the following specifications of the bakery: Current Output = 1,500 loaves per month Labor productivity = 2.344 loaves per labor hour Increase in demand = 25% Labor hours per workers ~ 160 hours per month. Comment Step ord A Calculate the productivity per labor hour as follows: Ouiput Labour hours 1,500 Labour hours 1,500 Labor productivity = 2.344= Labour hours 2.344 = 639.93 hours Calculate the number of workers required to produce cutput of 1,500 loaves are as follows: 639.93 Work d orkers required = w Comment, Step 4oi4 * Calculate tne total output of the cemand increased by 25% as rollows: Total output = (1,500 « 0.25) + 1,500 375 +1,500 = 1,875 ‘Therefore, tne total output needed to meet the demand Is 1,875 units, Calculate the number of labors with no change in the productivity number of workers to produce the Increase demand as follows. 1875 2.344 = 799.92 hours Number of labor hours Calculate the number of workers required to produce output of 1,875 loaves are as follows 799.92 160... (2) Workers required = Calculate the total workers required to meet the demand equation (2) ~ (1) as follows: 5-4 =I | walk Therefore, person Lwill need to adé [] more worker] to meet the increase demand. fore Total workers requiProblem Refer to Problem The pay will be $8 per hour for employees. Charles Lackey can also improve the yleic by purchasing a new blender. The new blender will mean an Increase in his Investment. ‘This added investment nas a cost ot $100 per month, but ne will achieve the same output (an Increase to 1,875) as the change In labor-nours. Which Is tne better cecision? a) Show the productivity change, In leaves per dolar, with an increase in labor cost (irom 640 to 1300 hours). b) Show the new productivity, in loaves per dollar, with only an increase in investment ($100 per mentn more). ¢) Shaw the percent productivity change fer labor and investment. Problem (Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and ‘excellent location, demand has increased by 25% in the last year. On far too many occasions, customers nave not been able fo purchase ine Dreac of their choice. Because of tne size of tne ‘store, no new ovens can be added At a stat meeting, one employee suggested ways to load tne ‘ovens direrently $0 that mote loaves of bread can be baked at one ime. This new process will require that tne ovens be loaded by hand, requiring adaittonal manpower. This fs the only thing to be changed. If the bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will Lackey need to add? (Hint: Each worker works 160 hours per month.) Step-by-step solution Step tors Productivity: Its 2 term which describes ihe emiciency of production with respect to the Inputs. ‘These inpuls are the factor of production which includes labor, machinery ete. The productivity helps a manufacturer to know whelher the resources which Nave been used in the production are efficient or not Comment step2ors ~ Galeulate the change in productivity as shown below: Particulars | Before change| After change Output 1,500 1,875 No. of hours 640 800 Productivity before change ~ 1500 loavesiotlar Productivity after change 8 [2.34375] loaves/dollar Comment steps oro b Calculate number of workers as shown below: Let the number ot workers be x ‘Thus, the number of workers Is 4 Calculate the productivity per loaves in dollars after an increas: below: in investment as shown Total labor cost = $1,280 x 4 (160 hours » $8 = $1,280) = $5,120 Additional cost = $5,120+8100 = $5,220 1,875 Productivity = 3575 loaves(dollar ‘Thus, the productivity per loaves in dollar Is. [9-339] loaves‘dolar. Comment stepaors A Caleulate the percent productivity change for labor and investment as shown below: Calculate the percent productivity change for labor as shown below: Productivity before change 34 1,875 800 =234 ‘Thus, tnere Is no change in tabor productivity Caleulate the percent productivity change for investment ss shown below: Productivity after change Productivity before change = Productivity after change = ‘There is a change in the productive due to change in the investment. Comment step sors Calculate the percentage productiity change for investment as shown below: Investment change = 25591-02929 99, 0.2929 0.0662 ~ 92929 0.226% 100 [23.60%] ‘Thus, there is a 22.80% change in the investment productivity,Chapter 1, Problem 14? [] 7 Bookmarks ‘Show all steps: CE Problem Reterto Problems 1 and 2. Charles Lackey’s utity cos's remain constant at $500 per montn labor at $8 per hour, and cost of ingredients at $0.95 per loaf, but Charles does not purchase the blender suggested in Problem what will he productivity of the bakery be? What will De the percent increase or decrease? Problem 1 Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and ‘excellent location, demand has increased by 25% in the last year. On far too many eccasions, customers have not been able to purchase the bread of their choice, Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ‘ovens ditferently so thal more loaves of bread can be baked al one time. This new process will require that the ovens be loaded by hand, requiring adcitional manpower. This is the only thing to be changed. Ifthe bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per lador-Nour, now many workers will Lackey need to aga? (Hint: Each worker works 150 hours per month.) Problem 2 Refer to Problem The pay will be $8 per hour for employees. Charles Lackey can also improve. the yleld by purchasing a new blencer. The new blender will mean an increase in nis investment. ‘This added investment nas a cost of $100 per month, but he will achieve the same output (an increase to 1,675) as the change in labor-nours. Which is the better decision? @) Show the productivity change, in loaves per dollar, with an increase in labor cost (from 640 to ‘800 hours) ) Show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month more) ) Show the percent productivity change for labor and investment. Step-by-step solution Step tors ~ Productivity reters to the term which describes the emiciency of procuction with respect 10 ne: inputs. These inputs are the factor of productions including labor, machinery etc. Comment Step 20r3 A a. ‘Consider the following information: Utiliy cost = $500 per month Labor = $8 per hour Cost of ingredients = $0.35 per loat Output = 1,500 Number of hours = 640 Caleulate the productivity of the bakery if Person ¢ does not purchase the blend: ‘shown below: Output ity cost + Labor cost + Cost of 1,500 500-+(8%640) +(0.35%1,500) 1,500, 500+5,120+ 525 1,500 6145 = [0-24 Toaves per dollar Productivity = U Hence, the productiity for the bakery 1s. [0.24 loaves per dollar| Comment Step 3 ors A b. ‘Consider the following information, Productivity witn purchase of blender = 0.29 loaves per dollar Productivity without purchasing blender = 0.24 loaves per dollar Determine the change (increase/decrease) in productivity as shown below: 0.24-0.29 0.24 os Percent change in productivity = 100 100 0.24 [=20.83%] Hence, there would be a deerease in productivity by [20.83%]Problem In December. General Motors produced 6,600 customized vans at ts plant in Detroit. The labor [productvay at this plants Known to have been 0.10 vans per Iabor-nour during that month. 300 aborers were employed al the plant that month. 2) How many nous did the average laborer work that month? b) It productivity can be increased to 0.11 vans per labor-hour, how many hours would the average laborer work that month? Step-by-step solution Step tors Productivity is the ratio of output and input of a production process. It can be calculated using all the input or any one of the inputs used in the process. If the input used to calculate the productivity is labor, tis called labor productivity. Number of units produced Labor hours required Consider the following Inforrnation. Productivity=- Number of vans proauced=3,600 Labor productivity atthe plat 10 vans per labor nour Number of lavorers=300 Calculate the number of aor hours as follows: Productivity Number of units produced Labor hours required oo 6,600 Labor hours required 6,600 Labor hours required [66, 000] Comment Step 20r5 ‘There ate 300 laborers wno used 66,000 hours to produce 6,600 vans. Calculate the average ours workes per faboras falows: Labour hours required ‘Number of laborers 66,000 ~~ 300 = [220 hous Average hours per labor=: Comment Step sors ‘Therefore, the average hours worked per labor is 220 hours. comment Step sors Calculate tne average number of nours worked per laborer at productivity 0.11 Caleulate the number of labor nours as follows: Productivity Number of units produced Labor hours required oie. 6,600 Labor hours required 6,600 Labor hours required “ on = {80,000} Comment Step 5015 ‘There are 200 laborers who used 66000 nour o produce & 600 vans. Caleulate the average routs worked perlavor a ttows Labour hours required “Number of laborers 0,000 300 = Bod ons! Average hours per labor Therefore, he average hours worked per labor is 200 hours.wn Problem ‘Susan Williams runs a small Ftaostaft job shop where garments are made. The job shop employs ‘eight workers Each worker is paid $10 per hour. During the first week of Marcn, each worker worked 45 hours. Together, they produced a batch of 182 garments. Of these garments, 52 were “seconds” (meaning that they were flawed). The seconds were sold for $90 each at a factory outlet store. The remaining 80 garments were sold to retail outlets at a price of $198 per ‘garment. What was the lator productivity. in dollars per labor-nour, at inis Job shop duning the first week of March? Step-by-step solution Step 1 of2 A Productivity is the evidence that compute output relative to the input used to produce it. itis usually represented as the ratio of output to input. Calculate Productivity using the following formula: Unitsproduced Tnput used Here, units produced refer to goods and services; Labour productivity = Input used refers to raw materials, labor force, energy and other resources. Productivity can be measured in two aspects: Single-factor productivity is used when only one -resource is measured. Determine the Single- factor procuctivity by way of using following formula: Units produced Single-faetor productivity = _UaitsPreduced_ ingle-actor Productivity hoursused Multifactor productivity is used to indicate the rallo of goods and services produced to many or all resources. Determine the Multifactor procuctvity by way of using following formula Output Multifactor productivity = Tnergy + Capiialt Misccll +Energy + Capital +Miscellaneous Labor +Materi Comment Step 20f2 A Consider the following data: A a 1 |_Number of workers & 2 Hourly wage 10 3 | Working hours perweek |__45 4 | Production quantity(a)_| 132 5 | Seconds Production(b) 52. 6 |_ Fresh Production(a-b) 20, 7 | Price of Seconds(Perunit) | _ 90 8 | Price offresh(Per unit) | 198 Determine the labor productivity in dollars per labor -hour by Way of using the following formula: es Units produced Single-factor productivity = ———_———_. ree tor ProdNetvY Tabor-hours used ( (Numberof secondsUnit price) +(Numberof fresh * Unit Price) Numberof labors Hours per week 5290+ 80>198 “8x45 4,680+15,840 360 20 360 -[S57] ‘Therefore, the labor productivity in labor dollar per hour during the first week of March isUnapter 1, Hrooiem 17+ LA Movers num a Step. Problem As parl ofa sluay for the Department of Labor Stalistcs, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for ane 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 productivty with dollars as the common denominator tor a) Last year by This year. ) Then determine the percent change in productivity for ine monthly average fast year versus the monthly average this year on 2 mutifactor basis, ? Labor $6 per hour ? Capital: 0 83% per month of investment ? Energy: $0.60 per BTU (Picture 2 Step-by-step solution Step 1017 © Productivity basically refers to the rate of production of nevr business by an individual, Population or community of 2 alven habitat or area Comment Step 2ot7 A DL statistics gives the following average monthly data’ [LAST vR| THIS YR] [Predectiom (derems) [1500 [1500 [Labor (hours) 350 | 325 [Captal Iavextsment (5) | 15000_| 18000 [Emerey (BTU) 3000 | 2700 Labor: $8 per hour Capital Investment: 0.83 percent per month of investment (Assumoton: me data rqure given is annual capita! investment and hence 0.83 percent gives the average moninly data.) Energy: $0.60 per BTU Comment step 3.or7 A Calculate the mutt-factor productwity using dollars as the common denominator. The formula ts ‘snown below: Ourput Multifactor productivity = a Cost of (Labor + Mater Finance + Mise.) Output Multi-factor productivity = £{ ——£_—! Fr __________ ™ »~ Costof (Labor = Capital Investment + Energy) Comment Step 4ct 7 A ‘The conversion of the data fo dollar terms yiekis is shown below in the excel spreadsheet 2 - Gg -co%02 f Last ve is vr[ UNIT cost| cost tast va| cost Tats ¥R 2 Production @ozens) [1500 [1500 (Bator Geoars) 50 2s is 3aDs 4 Captal Investment (9) |15000__[18000__o.0083___/=B4*SDs [=carsDa 5 Enorgy (BTU) [3000 [2700 _lo.6 [=cs*sD5, or [LAST ¥R[ THIS ¥R[UNIT COST] COST LAST ¥R| OOST THIS ¥R| (Predection (decems) | 1500 | 1500 [Taber Caos) 30 [325 | $800 2.200 32,600.00 8000 | 0.m3% 312450 149.40 [Emery (BTU) 3oo0_ | zm0 | $060 31,500.00 1,970.0 Comment Step Sot 7 ~ Determine the multi-factor productivity using dollars as the common denominator for last year. Output Last year mul ‘apital Investment factor productivity = Saba 00 dozen 52800 + $124.50 + $1,800 — 1,500 dozen © $4,724.50 -f Last year mult actor productivity = 175 dozens per dollar Hence, the multi-tactor productivity last year was 0.3178 dozens per dollar Input.Step6of7 b. Determine the multifactor productivity using dollars as the common denominator for this, year. Output This year multi-factor productivity = ———_____SPuh Cost of (Labor + Capital Investment + Energy) 1,500 dozen $2,600 + $149.40 + $1,620 1,500 dozen $4,369.40 (0.3433 dozens per dollar input| Hence, the multi-factor productivity this year was 0.0433 dozens per dollar input This year multi-factor productivity = Comment Step 7 of7 c Determine the percentage change in multi-factor productivity of this year over last year. This year’s productivity - Last year's productivity Last year’s productivity 03433-0.3175 0.3175 = 0.0258 199 0.3175 8125 x 100 Percentage change = 00 Percentage change = 100 = [8.125 percent Hence, the percentage change of this year’s multifactor productivity over last year’s is 8.125 percent.