Question: Directions : Read carefully and solve the following problems. A company that produces office organizers is currently utilizing 8 hours per day to complete 85
Directions : Read carefully and solve the following problems.
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 evaluation to improve the processes. Finally, she is convinced that by
doing minor change 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. Is there any improvement in productivity with the changes that
have been implemented by the process engineer? Prove your answer though
presenting the labor productivity, multifactor productivity and productivity
improvement.
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