SUBJECT : OPERATION MANAGEMENT

PLEASE DONT USE EXCEL FORMAT & USE MANUAL CALCULATION (HANDWRITING OR WORD).

I really appreciate your help in resolving the problem in advance.

Kusut-Sokmo Sdn. Bhd. wishes to assess their productivity performance for the past two years production process. Table 1 summarizes all the inputs and outputs at the end of year 2019 and 2020. Table 1: Inputs and outputs data in year 2019 and 2020 Item 2019 2020 Finished goods Quantity (unit) 145,000 150,000 Semi-finished goods Quantity (unit) 4,000 1,000 Price (RM/unit) 40 50 Completed percentage (%) 50 20 Labors No of working hours/labor Average wage (RM/hour) No of workers Deflator 1,920 10 60 1 1,920 15 60 1.2 Materials Weight of materials (kg) Price (RM/kg) 7,000 45 7,000 55 Energy Quantity (kWh) Price (RM/kWh) Deflator 12,000 0.3 1 20,000 0.5 1.15 a) Analyse the above inputs and outputs data. Then calculate the total productivity index for both years 2019 and 2020. Comment on the production performance of the company in the past two years. Limit your calculation to one decimal point only. (4 marks) b) Determine which input factor(s) that significantly influenced the two years productivity performance of the above company. Support your answer with partial productivity calculations. (2 marks)