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Jenny Chen MGMT 3320.001 Instructor: Enrique Ramirez 01/28/2012 Assignment #2 Pages 21 & 22: Problems #1.1; #1.5; #1.7; #1.9a.b. 1 .1 John Lucy makes wooden boxes in which to ship motorcycles. motorcycles. John and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity?
b) John and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what will be their new productivity?
c) What will be their unit increase in productivity per hour?
d) What will be their percentage change in productivity? The labor productivity has increased from 3 to 3.125. The change is
1 .5 Lori produces “Final Exam Care Packages” for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori’s productivity?
b) Lori thinks that by redesigning the package, she can increase her total productivity to 133 care packages per day. What will be her new productivity?
c) What will be the percentage increase in productivity if Lori makes the change? The labor productivity has increased from 20 to 26.6. The change is
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1 .7 Eric Johnson (using data from Problem 1.6) determines his costs to be as follows: • Labor: $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.
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1 .9 David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the following resources:
a) What is the labor productivity per labor-hour for these tires at Upton Manufacturing?
b) What is the multifactor productivity for these tires at Upton Manufacturing?