Question: OPIC CTIVITY ITLE CTIVITY IRECTION& EQUIREMENT Productivity Problem Solving Related to Productivity Measures Directions: Read carefully and solve the following problems. 1.A company that produces

OPIC CTIVITY ITLE CTIVITY IRECTION& EQUIREMENT
OPIC CTIVITY ITLE CTIVITY IRECTION& EQUIREMENT Productivity Problem Solving Related to Productivity Measures Directions: Read carefully and solve the following problems. 1.A company that produces office organizers is currently utilizing 6 hours per day to complete 100 pcs of the product. Engr Didi, the senior process engineer proposes to do minor change in the process flow to avoid redundancy. By doing this, the output increased to 129 pcs. The material cost per organizer is BD 3.5; additional supplies needed to complete the organizer cost BD 1.10 and labor is paid at the rate of BD 4.5 per hour, energy cost is assumed to be BD 1.0 while water cost is at BD 0.75. 1. Is there any improvement in productivity with the changes that have been implemented by the process engineer? 2. Prove your answer though presenting the labor productivity, multifactor productivity and productivity improvement. 3. What is your conclusion on the action done by Engr Didi? 2. Rashed and Company has completed 100,890 pcs of item Y for submission to Quality Assurance. These units have been completed by 15 operators who worked from 8am to 5 pm, with a break of an hour and a half for 2 weeks( 10 days). However, after rigid inspection, only 98.500 have passed the quality criteria. Find the productivity. 3. Kanoo Company, a fruit packaging company which is doing manual packaging. As of the moment, it has the following resources: 12 staff each working from 8 am to 5 pm with a break of 75 minutes with a payroll cost of BD 2400, material cost of BD 800 and overhead expenses of BD 1400. The company processess 120 fruit packs each day. The company recently purchased an automatic packaging machine that will allow the processing of 480 fruit packs per day. With the purchase of this equipment, the no of staff has been cut to half while the working hours is maintained and the labor cost is reduced by half. The overhead expenses is now increased by 25% as compared to the previous one. Material requirements became more efficient and the cost is reduced by 15%. Compute the labor productivity and MF for both old and new system

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