A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 10 such projects in an eight-hour day.
The firm's management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but he anslysis must be complete before the statistical analysis program can accept the new data. After some proactice, the new process can be completed with a standard time of 20 minutes for the data gathering and 30 minutes for the analysis.
What is the production (output per hour) for each alternative? What is the productivity (output per labor hour)?