Computing labor productivity for cars


Assignment:

Q1. A furniture manufacturing company has provided the following data (units are $1,000). Compare the labor, raw materials and supplies, and total productivity for the past two years.

                                                                                              Last Year      This Year

Output:                 Sales value of production                          $22,000     $35,000

Input:                    Labor                                                         10,000       15,000

                             Raw materials and supplies                         8,000       12,500

                            Capital equipment depreciation                      700         1,200

                            Other                                                            2,200         4,800

Q2. Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year Quantities sold, price per unit, and labor hours follow. What is the labor productivity for each car? Explain the problem(s) associated with the labor productivity.

                                              Quantity                                      $/Unit

Deluxe car                        3,255 units sold                             $8,300/car

Limited car                       6,150 units sold                              $9,800/car

Labor, Deluxe                  20,700 hours                                  $11/hour

Labor, Limited                  25,000 hours                                  $13/hour

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Operation Management: Computing labor productivity for cars
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