IDS $532$: Introduction to Operations Management

Session $1$ Lab Exercise

$1.$ Give three examples of productivity measures for each of the following types of businesses. For each, explain how they convey productivity.

Restaurant:

Hospital:

Amusement Park:

Cattle Farm:

Shirt Manufacturer:

$2.$ Bluegill Furniture is a small furniture shop that focuses on making kitchen chairs:

A$.$ The weekly dollar value of their output, including finished goods and work$-$in$-$ progress, is $$14,280.$ The value of inputs, such as labor, materials and capital is approximately $$16,528.$ Compute the total productivity measure for Bluegill Furniture.

B$.$ Bluegill has just purchased a new sanding machine that processes $17$ chairs in $8$ hours. What is the productivity of the sanding machine?

C$.$ Bluegill has hired two new workers to paint chairs. Each worker works $4$ hours. They have painted a total of $10$ chairs in $4$ hours. What is their labor productivity?

D$.$ On average Bluegill produces $35$ chairs per day. Labor costs average $$480,$ material costs are typically $$200,$ and overhead cost is $$250.$ If Bluegill sells the chairs to a retailer for $$70$ each, determine the multifactor productivity.

E$.$ Last week employees at Bluegill produced $46$ chairs after working a total of $200$ hours. Of the $46$ chairs produced, $12$ were damaged due to a problem with the new sanding machine. The damaged chairs can be discounted and sold for $$25$ each. The undamaged chairs are sold to a department store retail chain for $$70$ each.

a$.$ What was the labor productivity ratio for last week?

b$.$ If labor productivity was $$15$ in sales per hour the previous week, what was the change in labor productivity?