A company that produces office organizers is currently utilizing 8 hours per day to complete 85 pcs of the product. Engr Sofie, the process engineer continuously conducts evaluations to improve the processes. Finally, she is convinced that by doing minor changes in the process flow and avoiding redundancy in the process, the new output can be 120. The material cost per organizer is BD 5.5; additional supplies needed to complete the organizer cost BD 1.50 and labor is paid at the rate of BD 6 per hour, energy cost is assumed to be BD 2.5 per day and water cost is at BD 1.75. 

Required: Is there any improvement in productivity with the changes that have been implemented by the process engineer? Prove your answer by presenting labor productivity, multifactor productivity and productivity improvement.

Answer rating: 100% (QA)

Current output 85 pcs per 8 hours Labor productivity 85 8 10625 pcs per hour Input Material c... View the full answer