Questions

8 pts

The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining these figures:

Compute the labor productivity for each of the weeks.

Week 1:

Week 2:

Week 3:

Week 4:

Week 5:

Week 6:

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Question 2

2 pts

On the basis of your calculations, what can you conclude about crew size and productivity?

8 pts

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 the weekly labor cost.  Material cost is $6 per pound.  Round your final answer to two decimal places.

Week 1:

Week 2:

Week 3:

Week 4:

Question 4

2 pts

What do the productivity figures suggest?

Question 5

10 pts

An operation has a 10% scrap rate.  As a result 72 pieces per hour are produced.  What is the potential increase in labor productivity that could be achieved by eliminating the scrap?

Round your answer to one decimal place.

Question 6

10 pts

The following table shows data on the average number of customers processed by several bank service units each day.  The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.  

a.  Compute the labor productivity and the multifactor productivity for each unit.  Use an 8-hour day for multifactor productivity.

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 to two decimal places for the labor productivity rates.  Round to three decimal places for the multifactor productivity rates.