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

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

a. Calculate the partial operational productivity of Direct Materials and Direct Labor for 2021 and 2020

(round answers to four decimals)

b. Calculate the partial financial productivity of Direct Materials and Direct Labor for 2021 and 2020 (round answers to four decimals).

c. Was Tias quality program effective? Support your answer with relevant insights (dont repeat calculation results) from your productivity analysis above.

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