Question

• 1.1 John Lucy makes wooden boxes in which to ship motorcycles. John and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? b) John and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what will be their new productivity? c) What will be their unit increase in productivity per hour? d) What will be their percentage change in productivity? PX • 1.3 This year, Benson, Inc., will produce 57,600 hot water heaters at its plant in Yulee, Florida, in order to meet expected global demand. To accomplish this, each laborer at the Yulee 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? .. 1.7 Eric Johnson (using data from Problem 1.6) determines his costs to be as follows: Labor: $10 per hour • Resin: $5 per pound • Capital expense: 1% per month of investment Energy: $.50 per BTU. Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. Ex

Answer 1

Solutim: (a) from the given data, units produced = 120 boxes Input used = 40 hours per day Input used 40 hours per day means Labor hours per day. Productivity – Units produced Input used 120 boxed 40 hr per day P = 3 boxes per day (b) Here Now, in units produced new productivity increased to 125, Units produced Input used = 1256 P = 3.125 boxes per day Increase in productivity – New productivity - Original productivity = 3.125 - 3 = 0.125 :. Increase in productivity = 0.125 boxes per hour

Tercentage change in productivity (New productivity - Original productivity Original productivity 13.125 -3) = 0.125 3 = 0.041667 = 0.041667 X100 = 4.2% . The percentage change in productivity = 4.2%