Question

Barry's Tire Service completed 100 tire changes, six brake jobs, and 16 alignments in an eight-hour day with his standard crew of six mechanics. A brake specialist costs $16 per hour, a tire changer costs $8 per hour, and an alignment mechanic costs $14 per hour. The materials cost for a day was $2,000, and overhead cost was $500.

What is the shop's labor productivity (in dollars per hour) if the retail price for each respective service is $60, $150, and $40?

What is the multifactor productivity, if the crew consisted of two of each type mechanic?

Answer 1

Job	Nos.	Retail price
Tire change	100	60.00
Brake jobs	6	150.00
Alignments	16	40.00
Output	7540
Labor input
Brake specialist	256
Tire changer	128
Alignment mechanic	224
Total	608
Labor productivity	7540/608	12.40
Multifactor productivity		7540/(608+2000+500)		2.43