Chapter #1 & #2

1. Calculate the multifactor productivity measure for each week shown below. What do the productivity figures suggest?

Assume 40-hour week and an hourly wage rate of $15. Overhead is 1.3 times weekly labor cost. Material cost is $5 per kilogram. Selling price is $150 per unit.

2 246 12 45 4 284 9 38

True/False (Identify the following items are true or false and why?)

2. Operations managers are responsible for managing activities and resources that produce goods and/or provide services.

3. Value-added refers to the cost of the inputs required to produce goods and services.

4. Tracking productivity measures over time enables managers to judge organizational performance and to decide where improvements are needed.