Assignment:
An operation has a 10 percent 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.?
A manager checked production records and found that a worker produced 160 units while working 40 hours. In the previous week, the same worker produced 138 units while working 36 hours. Did the worker's productivity increase, decrease, or remain the same? Explain.
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.
Unit Employees Customers Processed/Day
A 4 36
B 5 40
C 8 60
D 3 20
1. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity.
2. 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.