Question

1. AIT has a staff of 4 cleaners, each working 8 hours per day (for a payroll cost of GH¢ 640/ day) and overhead expenses of GH¢ 400 / day. The cleaners mop and clean 8 floors each day. The company recently purchased a new machine system that will mop and cleans 14 floors per day. Although the cleaners, their works hours, and pay will be same, the overheads expenses are now GH¢ 800 per day. Compute the following;

1. labour productivity with the old system.
2. labour productivity with the new system:
3. multifactor productivity with the old system:
4. multifactor productivity with the new system:

Answer 1

Answer i :

labor productivity with the old system =8/4

=2 floors/cleaner

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Answer ii :

labour productivity with the new system =14/4

=3.5 floors/cleaner

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Answer iii :

multifactor productivity with the old system=8/(4*640+400)

=0.0027

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Answer iv :

multifactor productivity with the new system: =14/(4*640+800)

=0.0042