Tom’s Maytag Laundry had the following results in 2011 and 2013. 

The laundry used the same facilities in 2013 as in 2011. During the past three years, however, the company put more effort into training its employees. The manager of Tom’s was curious about whether the training had increased labour productivity. 

1. Compute a measure of labour productivity for 2013 based entirely on physical measures. Do the same for 2011. That is, from the data given, choose measures of physical output and physical input, and use them to compare the physical productivity of labour in 2013 with that in 2011. 

2. Compute a measure of labour productivity for 2013 based entirely on financial measures. Do the same for 2011. That is, from the data given, choose measures of financial output and financial input, and use them to compare the financial productivity of labour in 2013 with that in 2011. 

3. Suppose the following productivity measure were used. 

productivity = sales revenuedirect labour hours worked Because of inflation, each 2011 dollar is equivalent to 1.12 2013 dollars. Compute appropriate productivity numbers for comparing 2013 productivity with 2011 productivity.

Transcribed Image Text:

2011 1,360,000 kg 2013 1,525,000 kg Laundry processed Sales revenue Direct-labour-hours worked 45,100 hours Direct labour cost $720,000 $1,014,000 46,650 hours $316,000 $408,000