POM Answers

-handwritten -up to three decimal places -box the final answer

Exercise 4 A company that makes shopping carts for supermarkets and other stores recently purchased some new reduces the labor content of the jobs involved in producing the shopping carts. Prior to buying the new e company used five workers, who produced an average of 60 carts per hour. Hourly wage per worker was cost was P180 per hour. With the new equipment, it was possible to transfer one of the workers to anot machine cost increased by P45 per hour while output increased by four carts per hour.

-Compute the labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. -Compute the multifactor productivity under each system. Use carts per peso cost (labor + machine) as the measure. -Comment on the changes in productivity according to the two measures. -Which of the two measures – (a) labor productivity or (b) multifactor productivity – is the more pertinent for this situation?

labor productivity: output input

Old system 60 carts/hr 5 workers = 12 carts/worker/hr

multifactor Productivity

60 carts (5 x 45 +180)

0.148 carts/P (peso)

New system 64 carts/hr 4 workers

= 16 carts/worker/hr 64 carts (4 x 45 +225)

0.158 carts/P

labor productivity - more pertinent measure

Exercise 5 A house with surface area of 1000 square meters will be painted in 3 workdays. One work day is 8 hrs., but the workers are allowed two fifteen-minute breaks per day. If their productivity is 11.11 sq. m. / hr., how many painters should be working? Let x = no. of painters 2/

rate of work of 1 painter = 11.11 m hr

2

1000m 22.5

rate of work of x painters = =

11.11m hr

2

x =

44.44 m hrs

2

2

44.44 m

x = 4 painters

quipment that quipment, the P45 and machine er department, and