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A B D E F H - K 1 G Gibson Products produces cast bronze valves for use in offshore oil platforms. 2 Currently, Gibson produces 1,600 valves per day. 3 The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work 4 session and another at the afternoon work session. Gibson is in a competitive industry and needs to increase productivity to stay competitive. 5 They feel that a 20 percent increase is needed. 6 7 Gibson's management believes that the 20 percent increase will not be possible without a change in working conditions, so they change work hours. 8 The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. 9 Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. 0 After this change, valve production increased to 1,800 units per day. 11 12 a. Calculate labor productivity for the initial situation. 13 b. Calculate labor productivity for the hypothetical 20 percent increase. 4 c. What is the % change in productivity after the change in work rules? 15 d. Analyzing these results (did productivity increase 20%). 16 17 18 Parameters old Schedule New Schedule 19 Valves per Day 20 Hours per day per employee 21 # of employees 22 23 b. c. % change 24 Single factor productivity (labor hours) 25 26 Provide the answer for part d. below. 27 28 29