Comment on changes in productivity according to two measures

Assignment Help Operation Management

Reference no: EM131416664

Productivity Practice

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 80 carts per hour. Workers receive $16 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12 per hour while output increased by 6 carts per hour.

a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 2 decimal places.)

Before carts per worker per hour

After carts per worker per hour

b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 2 decimal places.)

Before carts/dollar cost

After carts/dollar cost

c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "%" signs in your response.)

Labor productivity

by %

Multifactor productivity

by %

Reference no: EM131416664

Questions Cloud

Discuss importance of companies embracing social media : Develop a PowerPoint presentation (10 slides in length). The content should focus on some aspect of social media use in the workplace. Potential examples include the importance of companies embracing social media, advertising through social medi..

Discuss the difference between a leader and a supervisor : Describe the crisis or disaster that took place.Compare and contrast the crisis management style exhibited by the persons in a position of leadership at the time of the crisis, with what you imagine "your" leader would have demonstrated. Discuss the ..

Determine whether mary acted irresponsibly : Read Case: Speaking Out about Malt, Determine whether Mary acted irresponsibly or disloyally in your opinion

What is a realistic six-month marketing budget : What is a realistic six-month marketing budget for achieving your company's initial goal? What resources will you need to start? Include development costs (people and time), marketing launch costs, manufacturing set-up, etc

Comment on changes in productivity according to two measures : A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Compute labor productivity under each system. Use carts per w..

National fire protection agency : Here you are given an agency to review. Post a one page single spaced Word Document narrative in your own words summarizing what you learn about the agency mission and operations in this Discussion Board. "National Fire Protection Agency"

Learning organizations are characterized by a willingness : Virtual organizations have the advantage of. The idea that an organization is an arena where interests are mobilized suggests that organizations may often be. The decline of BlackBerry from once being the #1 worldwide mobile phone provider may have b..

Multi-national company has two manufacturing plants : A multi-national company has two manufacturing plants, one in the U.S. and one in another country. Both produce the same item, each for sale in their respective countries. Explain how that factor can cause productivity figures to be misleading. Is th..

What ethical issues is heather facing in this situation : What ethical issues is Heather facing in this situation? What possible marketing claims about the company's relationship with the Amazonian tribe would cross a line into unethical territory? What claims could it make ethically? How could Ma Earth cre..

User Account

All Pages