Multifactor productivity, Operation Management

Assignment Help:
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 5 workers, who produced an average of 60 carts per hour. Workers receive $19 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 $10 per hour while output increased by 5 carts per hour.



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/$1
After carts/$1

Related Discussions:- Multifactor productivity

What is performance measures, Last year, the manager of the service departm...

Last year, the manager of the service department at East Woods Ford instituted a customer opinion program to find out how to improve service. One week after service on a vehicle wa

Explain what is the direct labour utilization, Revisit the Automobile Drive...

Revisit the Automobile Driver's License office example. a. What is the direct labour utilization for the process shown in figure 7.6a? b.What is the direct labour utilization for

Line Balancing, What do you understand by line balancing? what happens if b...

What do you understand by line balancing? what happens if balance doesn''t exists?

Explain how might you prevent and fix such issues, Finding solutions to pro...

Finding solutions to problems is affected by how one frames the problem. In other words, what one thinks is wrong will influence what one believes the available solution(s) to be.

Describe determine the number of units where either, Stan Fawcett's company...

Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3000

Explain what is the cheapest cost for meeting, ABC Machine Shop, Inc., has ...

ABC Machine Shop, Inc., has a 1-year contract for the production of 48,000 gear housings for a new off-road vehicle. ABC hopes that the contract will be extended and the production

Explain production system, If all you knew about a production system was th...

If all you knew about a production system was that total daily output was 400 units and the total labour necessary to produce the 400 units was 350 hours, what kind of productivity

Describe what is meant by a franchise, Question: a) What is a strategy...

Question: a) What is a strategy? b) Describe what is meant by a franchise. c) Henry Fayol put forward 6 primary functions of management. State the 6 functions and brief

Explain the probable destiny competing products, Consider this: Lee Peterso...

Consider this: Lee Peterson has invented a new product that detects water leaks due to broken pipes and sends out an alarm similar to a smoke alarm. However, Lee has very little pe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd