Question: 5. An operation has a 10% scrap rate. As a result, 72 pieces per hourare produced. What is the potential increase in labor productivity that

 5. An operation has a 10% scrap rate. As a result,

5. An operation has a 10% scrap rate. As a result, 72 pieces per hourare produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap. 10% of the operation is scrap, 90% is not. 72 pieces were produced which were not scrapped, which is .9X P2. 72+s =80 3: 3072 S: 8pcs/hr Percent increase is 8/12 = .1111 or 11.11%

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