Question: Chapter Two Competitiveness, Strategy, and Productivity 5. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What

Chapter Two Competitiveness, Strategy, and

Chapter Two Competitiveness, Strategy, and Productivity 5. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? thot worker nroduced 160 units while working 1 Problem 5 With Scrap Rate of 10%: Amount of Good Product Produced = Amount In x (1 Scrap Rate) Re-arranging terms: Amount In = Amount of Good Product Produced / (1 - Scrap Rate) Without Scrap: The output could be XX pieces per hour. The increase in productivity would be XX XX = X pieces per hour. This would amount to a XX.X productivity increase of: Round to one decimal place

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