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Jiffy Lube wants to compare productivity at two locations. Location A completes 93 oil changes done...

Jiffy Lube wants to compare productivity at two locations. Location A completes

93 oil changes done by 6 employees working an 8 hour shift. What is the labor productivity at Location A in oil changes per hour?
business   Operations-Management   
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Answer #1

Solution:

Labor productivity is calculated as,

Labor productivity = Number of oil changes / (Number of employees x Number of hours in a shift)

Putting the given values in the above formula,

Labor productivity = 93 oil changes / (6 employees x 8 hours)

Labor productivity = 93 oil changes / 48 hours

Labor productivity = 1.9375 or 1.94 oil changes per hour (Rounding off to two decimal places)

Labor productivity at Location A = 1.94 oil changes per hour

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