In a subassembly production line, 10 operators are producing 2,000 products in two shifts (eight hours per
Question:
In a subassembly production line, 10 operators are producing 2,000 products in two shifts (eight hours per shift). What is the labour productivity for this production line? There is a plan to install an automated tool for each station which will increase the production to 2,400 in two shifts.
a. What will be the labour productivity after installing the new automated tool? (Round the final answer to 3 decimal places.)
b. Calculate the labour productivity growth.
The following table shows the output of the past four weeks' production:
a. Assume a total of 40 hours of work a week. Calculate the labour productivity per hour for each week.
Week | Output (units) | Workers | Material (kg) | Labour Productivity per hour |
1 | 284 | 5 | 44 | |
2 | 325 | 6 | 45 | |
3 | 316 | 6 | 45 | |
4 | 343 | 7 | 46 | |
b. Calculate the multi-factor productivity measure for each week below. Assume 40 hours of work a week and an hourly wage rate of $15. Overhead is 1.5 times weekly labour cost. Material cost is $4 per kilogram. Selling price is $130 per unit.What do the productivity figures suggest?