ssignments $-$ Problems Solving CH $1$

Week $1$

$1\mathrm{.}1$ Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of $40$ hours per day making the $120$ boxes.

What is their productivity?

Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to $125$ per day, what will be their new productivity?

What will be their unit increase in productivity per hour?

What will be their percentage change in productivity?

$1\mathrm{.}5$ George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining

the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of $3\%$ increase in productivity per year? He has the following data representing a month from last year and an equivalent month this year:

Show the productivity percentage change for each category and then determine the improvement for labor$-$hours, the typical standard for comparison.

Last Year Now

Units produced $1,0001,000$

Labor $($hours$)300275$

Resin $($pounds$)5045$

Capital invested $($$$)10,00011,000$

Energy $($BTU$)3,0002,850$

$1\mathrm{.}6$ George Kyparisis $($using data from Problem $1\mathrm{.}5)$ determines his costs to be as follows:

Labor: $$10$ per hour

Resin: $$5$ per pound

Capital expense: $1\%$ per month of investment

Energy: $$0\mathrm{.}50$ per BTU

Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator.

$1\mathrm{.}8$ Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes $1,000$ tires per day with the following resources:

Labor: $400$ hours per day @ $$12\mathrm{.}50$ per hour

Raw material: $20,000$ pounds per day @ $$1$ per pound

Energy: $$5,000$ per day

Capital costs: $$10,000$ per day

What is the labor productivity per labor$-$hour for these tires at Lakefront Manufacturing?

What is the multifactor productivity for these tires at Lakefront Manufacturing?

What is the percent change in multifactor productivity if Fok can reduce the energy bill by $$1,000$ per day without cutting production or changing any other inputs?