Question: A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 30% with less material, but
A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 30% with less material, but one additional worker required. Under the old process, 6 workers could produce 90 units per hour. Labor costs are $12/hour, and material input was previously $19/unit. For the new process, material is now $13/unit. Overhead is charged at 1.8 times direct labor cost. Finished units sell for $33 each. Answer each of the following questions: Before the Process Improvement, the Multifactor Productivity = ( Answer with 3 decimal places x.xxx) After the Process Improvement, the Multifactor Productivity = (Answer with 3 Decimal Places x.xxx) The increase in productivity associated with the process improvement = % (Answer is a whole number xx)
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