1 Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year:
Show the productivity percentage change for each category and then determine the improvement for labour-hours, the typical standard for comparison. PX
2 Eric Johnson (using data from Problem 1.6) determines his costs to be as follows:
Labour: $10 per hour
Resin: $5 per pound
Capital expense: 1% per month of investment
Energy: $.50 per BTU.
Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. PX
Last Year Now
Units produced 1,000 1,000
Labour (hours) 300 275
Resin (pounds) 50 45
Capital invested ($) 10,000 11,000
Energy (BTU) 3,000 2,850
*Note: PX means the problem may be solved with POM for Windows and/or Excel OM.