Question: all data is present Green and Sons Industries is assessing the productivity of their manufacturing facilities located in different cities across the US. The centers
all data is present
Green and Sons Industries is assessing the productivity of their manufacturing facilities located in different cities across the US. The centers vary in respect to the number of units produced, as well as the labor, material, energy, transportation, and overhead costs. Table 1 is the data associated with their labor costs during the evaluation time period. Table 2 provides the aggregate cost data for each location over the last 6 months. Table 3 provides the energy usage and rates for the period per location. During the last 6 months, the finished goods inventory (in millions) for Miami, Los Angeles, Dallas, and Atlanta for the same period were 25, 30, 12.5, and 20 units, respectively. Work-in-process (WIP) inventory (in millions) for each location was 1.8, 3.96,5,4, and 10.8, respectively, where each unit of WIP is counted as 75% of a finished unit. Given this information, answer the following questions. Table 1 Miami 10 Labor Factors Number workers Hourly rate Average Hours/Week/Worker Los Angeles 7 $32 35 Dallas 5 $18 40 Atlanta 4 $15 40 $20 35 Table 2 Costs (x 10) Labor costs Material costs Overhead costs Transportation costs Miami 7,000 5,250 1,440 275 Los Angeles 7,840 4,500 3,600 2,750 Dallas 3,600 3,000 3,000 2,200 Atlanta 2,400 3,750 600 5,500 Table 3 Energy Factors Consumption (kwh) Cost per kwh (9) Miami 7475 0.107 Los Angeles 5800 0.207 Dallas 12150 0.079 Atlanta 5380 0.119 Note 1: Excel may be used to perform the calculations but all answers must be contained in the test document. Note 2: Round each calculation to at least 3 decimal places, a) What is the labor productivity for each facility based on dollars)? (4) b) What is the labor productivity for each facility (based on hours)? (4) c) What is the energy productivity (based on kwh)? (4) d) What is the multifactor productivity (labor, material, overhead, transportation, and energy)? (4) e) which location would be considered the most productive and why? (4)
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