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    Week 2 Practice Questions - Productivity

    Uploaded by

    Heah Wan Yee
    This document contains 5 practice questions about calculating labor productivity, multifactor productivity, and percentage changes in productivity. The questions provide information on resources like labor hours, materials, energy usage, and costs for various companies in different industries to calculate productivity metrics.

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    Week 2 Practice Questions - Productivity

    Uploaded by

    Heah Wan Yee
    103 views6 pages
    This document contains 5 practice questions about calculating labor productivity, multifactor productivity, and percentage changes in productivity. The questions provide information on resources like labor hours, materials, energy usage, and costs for various companies in different industries to calculate productivity metrics.

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    Week 2 Practice Questions_Productivity

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    This document contains 5 practice questions about calculating labor productivity, multifactor productivity, and percentage changes in productivity. The questions provide information on resources like labor hours, materials, energy usage, and costs for various companies in different industries to calculate productivity metrics.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    103 views6 pages

    Week 2 Practice Questions - Productivity

    Uploaded by

    Heah Wan Yee
    This document contains 5 practice questions about calculating labor productivity, multifactor productivity, and percentage changes in productivity. The questions provide information on resources like labor hours, materials, energy usage, and costs for various companies in different industries to calculate productivity metrics.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    Practice Questions

    Productivity
    Question 1
    Hokey Min’s Kleen Karpet cleaned 65 rugs in
    October, consuming the following resources:
    Labor: 520 hours at $13 per hour
    Solvent: 100 gallons at $5 per gallon
    Machine rental: 20 days at $50 per day

    a) What is the labor productivity?


    b) What is the multifactor productivity?
    Question 2
    Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires.
    Fok makes 1,000 tires per day with the following resources:
    Labor: 400 hours per day @ $12.50 per hour

    Raw material: 20,000 pounds per day @ $1 per pound

    Energy: $5,000 per day

    Capital costs: $10,000 per day

    a) What is the labor productivity for these tires at Lakefront


    Manufacturing?
    b) What is the multifactor productivity for these tires at Lakefront
    Manufacturing?
    c) What is the percent change in multifactor productivity if Fok can reduce
    the energy bill by $1,000 per day without cutting production or changing
    any other inputs?
    Question 3
    Brown’s, a local bakery, is worried about increased costs – particularly energy.
    Last year’s records can provide a fairly good estimate of the parameters for
    this year. Wende Brown, the owner, does not believe things have changed
    much, but she did invest an additional $3,000 for modifications to the
    bakery’s ovens to make them more energy efficient. The modifications were
    supposed to make the ovens at least 15% more efficient. Brown has asked
    you to check the energy savings of the new ovens and also to look over other
    measures of the bakery’s productivity to see if the modifications were
    beneficial. You have the following data to work with:
    Last Year Now
    Production (dozen) 1,500 1,500
    Labor (hours) 350 325
    Capital investment ($) 15,000 18,000
    Energy (BTU) 3,000 2,750
    Show the productivity percentage change for each measure. What do you tell
    Brown?
    Question 4
    Munson Performance Auto, Inc., modifies 375 autos
    per year. The manager, Adam Munson, is interested
    in obtaining a measure of overall performance. He
    has asked you to provide him with a multifactor
    measure of last year’s performance as a benchmark
    for future comparison. You have assembled the
    following data. Resource inputs were labor, 10,000
    hours; 500 suspension and engine modification kits;
    and energy, 100,000 kilowatt-hours. Average labor
    cost last year was $20 per hour, kits cost $1,000
    each, and energy costs were $3 per kilowatt-hour.
    What do you tell Mr. Munson?
    Question 5
    Lake Charles Seafood makes 500 wooden packing
    boxes for fresh seafood per day, working in two 10-
    hour shifts. Due to increased demand, plant
    managers have decided to operate three 8-hour
    shifts instead. The plant is now able to produce 650
    boxes per day.
    a) Calculate the company’s productivity before the
    change in work rules and after the change.
    b) What is the percentage increase in productivity?
    c) If production is increased to 700 boxes per day,
    what is the new productivity?

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