1 Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year:

Show the productivity percentage change for each category and then determine the improvement for labour-hours, the typical standard for comparison. PX

2 Eric Johnson (using data from Problem 1.6) determines his costs to be as follows:

Labour: $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. PX

Last Year Now

Units produced 1,000 1,000

Labour (hours) 300 275

Resin (pounds) 50 45

Capital invested ($) 10,000 11,000

Energy (BTU) 3,000 2,850

*Note: PX means the problem may be solved with POM for Windows and/or Excel OM.