Productivity calculation, Compute labor productivity under

Productivity calculation

Assignment Help Operation Management

Reference no: EM132226187

Productivity Calculation

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 85 carts per hour. Workers receive $10 per hour, and equipment cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increases by $10 per hour while output increased by three carts per hour.

1. Compute labor productivity under each system (before and after the purchase of new equipment). Use carts per hour of a worker as the measure for labor productivity.

2. Compute multi-factor productivity under each system. Use carts per dollar (labor plus equipment) as the measure.

3. Comment on productivity changes according to labor and multi-factor productivity and which productivity measure do you believe is more pertinent for this situation?

Reference no: EM132226187

Questions Cloud

Gourmet pretzels bakes soft pretzels on assembly line : Productivity Growth Calculation Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8 hour shift.

Describe how employees training and development of HRM : Describe how the employees training and development of HRM will influence the performance of an organization.

Define trust and loyalty : Define Trust and Loyalty. Do all employees have a responsibility to be trust-worthy?

Learned in the past about essential business concepts : What do you know or learned in the past about Essential Business Concepts? Write an evaluative and synthesizing narrative.

Productivity calculation : Compute labor productivity under each system (before and after the purchase of new equipment). Use carts per hour of worker as measure for labor productivity.

Contrast the weight loss effects : Contrast the weight loss effects of near-fasting to the weight loss effects of exercise. Justify your answer.

How does the situation influence value : How does the “situation” influence value? Discuss the different ways that “time” influences customers perception of value.

Bags of pretzels are sampled to ensure proper weight : Bags of pretzels are sampled to ensure proper weight. The overall average for the samples is 10 ounces. Each sample contains 30 bags.

Manufacturers face when they follow servitization path : What would be the challenges that manufacturers face when they follow servitization path?

User Account

All Pages