Question: In 2020 Tia Corp. implemented a program to reduce defects in the manufacturing process. The program focused on training production line employees at the beginning

  1. In 2020 Tia Corp. implemented a program to reduce defects in the manufacturing process. The program focused on training production line employees at the beginning of the process to identify substandard direct materials that lead to defective units. Selected 2021 and 2020 results for Tia are as follows:

2021

2020

Units

62,500

67,188

Direct materials (pounds)

50,000

57,109

Direct labor (hours)

25,000

24,432

Cost of materials per pound

$12.00

$11.00

Cost of direct labor per hour

$ 30.00

$ 28.00

  1. Calculate the partial operational productivity of Direct Materials and Direct Labor for 2021 and 2020 (round answers to four decimals).
  2. Calculate the partial financial productivity of Direct Materials and Direct Labor for 2021 and 2020 (round answers to four decimals).
  3. Was Tias quality program effective? Support your answer with relevant insights (dont repeat calculation results) from your productivity analysis above.

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