Question: 3. i. What is productivity? Why it is important for operations manager to calculate Productivity? ii. Define the terms Machine productivity, Labour Productivity, Total Productivity.

3. i. What is productivity? Why it is important

3. i. What is productivity? Why it is important for operations manager to calculate Productivity? ii. Define the terms Machine productivity, Labour Productivity, Total Productivity. iii. A firm produces 1500 units per day using four workers on a five-hour shift. On average, 12% of the units produced are defective and must be scrapped. What is the labor productivity for non-defective units? iv. The firm (as in iii) is considering the purchase of new machine for the production line. The machine will enable reduce defective unit rate to 4% to process eight loans per day, although it decreases products units per day to1400. a. Compute the new labour productivity for non-defective units. b. Should the firm proceed with the purchase of the new machine? Explain.( (Total 20 Marks)

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