A catering company prepared and served 350 meals at an anniversary celebration last week using eleven workers. The week before, five workers prepared and served 240
meals at a wedding reception.
a1. Calculate the labor productivity for each event. (Round your answers to 1 decimal place.)
Anniversary
meals/worker
Wedding
meals/worker
a2. For which event was the labor productivity higher?
Anniversary
Wedding
value:
4.00 points
The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures:
Week Crew Size Yards Installed
1 4 96
2 3 65
3 4 97
4 2 52
5 3 60
6 2 54
________________________________________
a. Compute the labor productivity for each of the weeks. (Round your answers to 2 decimal places.)
Week Crew size Labour productivity
(Yards/Person)
1 4 2 3 3 4 4 2 5 3 6 2 ________________________________________
b. Which crew size works best?
A crew of seems to work best.
value:
4.00 points
Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $12. Overhead is
1.5 times weekly labor cost. Material cost is $7 per pound. (Round your answers to 2 decimal places.)
Week Output (units) Workers Material (lbs)
1 29,000 5 480
2 34,000 7 480
3 31,000 8 510
4 36,000 8 510
________________________________________
Week MFP
1 2 3 4 ________________________________________
value:
4.00 points
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 6 workers, who produced an average of 70 carts per hour. Workers receive $17 per hour,
and machine cost was $50 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12
per hour while output increased by 5 carts per hour.
a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 2 decimal places.)
Before
carts per worker per hour
After
carts per worker per hour
b. 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
c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations and final answers to 2 decimal places. Omit the
“%” signs in your response.)
Labor productivity by % Multifactor productivity by %value:
4.00 points
An operation has a 30 percent scrap rate. As a result, 62 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by
eliminating the scrap? (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the “%” sign in your response.)
This would amount to an increase of % value:
5.00 points
A manager checked production records and found that a worker produced 172 units while working 40 hours. In the previous week, the same worker produced 120 units while
working 30 hours.
a. Compute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.)
Current period productivity
Units / hr
Previous period productivity
Units / hr
________________________________________
b. Did the worker’s productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 decimal places. Omit the “%”
sign in your response.)
Worker’s productivity by %
rev: 03_15_2012
value:
5.00 points
The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $30, the overhead rate is
1.0 times labor cost, and material cost is $8 per customer.
Unit Employees Customers Processed / Day
A 3 38
B 6 42
C 8 54
D 3 26
________________________________________
a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your “Labor
Productivity” answers to 1 decimal place and “Multifactor Productivity” answers to 3 decimal places.)
Unit Labor
Productivity Multifactor Productivity
A
B
C
D
________________________________________
b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected
labor and multifactor productivity rates for each unit. (Round your “Labor Productivity” answers to 1 decimal place and “Multifactor Productivity” answers to 4 decimal
places.)
Unit Labor
Productivity Multifactor
Productivity
A
B
C
D
________________________________________
rev: 03_15_201
value:
5.00 points
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 65 minutes is needed to do a title
search. The researcher cost is $1.7 per minute. Clients are charged a fee of $490. Company A’s software would reduce the average search time by 12 minutes, at a cost
of $3.5 per search. Company B’s software would reduce the average search time by 16 minutes at a cost of $5.3 per search.
a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$”
sign in your response.)
Approach Productivity per
Dollar Input
Current $ Company A $ Company B $ ________________________________________
b. Which option would have the highest productivity in terms of revenue per dollar of input?
Company A
Company B
Both
value:
5.00 points
A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $40 per hour per
employee. Each employee identifies an average of 2,700 potential leads a week from a list of 5,000. An average of 5 percent of potential leads actually sign up for the
service, paying a one-time fee of $75. Material costs are $1,100 per week, and overhead costs are $11,000 per week.
Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Round your answer to 2 decimal places.)
Multifactor productivity
rev: 03_15_2012, 08_30_2013_QC_34
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