BBA P&OM PRODUCTIVITY EXERCISES KRL1Student tuition at XYZ University is $100 per semester credit hour. The state supplements school revenue by matching student tuition, dollar for dollar. Average class size for typical three-credit course is 50 students. Labor costs are $4,000 per class, materials costs are $20 per student per class, and overhead costs are $25,000 per class. a.What is the multifactor productivity ratio? Ans 1.00 b.If instructors work an average of 14 hours per week for 16 weeks for each three- credit class of 50 students, what is the labor productivity ratio? Ans $133.93/hour KR2Suds and Duds Laundry washed and pressed the following numbers of dress shirts per week. WEEK| WORK CREW _| HOURS | SHIRTS [Ans 1 Sud and Dud 24 68 | 2.833 2 Sud and Dud 46 130__| 2.826 3 __[Sud, Dud, and Jud [62 152 | 2.452 4 | Sud, Dud, and Jud | 51 125 | 2.451 5 Dud and Jud 45 131__ [2.911 Calculate the labor productivity ratio for each week. KR3.Compaet dise players are produced on an automated assembly line. The standard cost of compact dise players is $150 per unit (labor, $30; materials, $70; and overhead, $50). The sales price is $300 per uni a.To achieve a 10 percent multifactor productivity improvement by reducing materials costs only, by what percent must those costs be reduced? Ans 19.5% b.To achieve a 10 percent multifactor productivity improvement by reducing labor costs only, by what percent must those costs be reduced? Ans 45.47% ¢.To achieve a 10 percent multifactor productivity improvement by reducing overhead costs only, by what percent must those costs be reduced? Ans 27.28% JCA4.A furniture manufacturing company has provided the following data. Compare the labor, raw materials and supplies, and total productivity of 2007 and 2008. 2007 [2008 Outpu Sales value of production 322,00 | $35,000 t 0 Input Labor 10,000 | 15,000 Raw materials and supplies 8,000 | 12,500 Capital equipment and depreciation | 700 [1,200 Other 2,200 | 4,800Ans 200 | 2008 7 Partial productivities | labor 2.20 [2.33 ‘Raw materials and supplies | 2.75 [2.80 ‘Total productivity 1.05 [1.04 JCAS.As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report. Jan | Feb | Mar | April Units produced | 230 | 180 | 280 | 3000 o}lolo Hours per machine | 325 | 200 | 400 [ 320 Number ofmachines[ 3 [| 5 [| 4 | 4 Find the average monthly productivity (units per hour). Ans 2.359, 1.800, 1.750, 2.344 JCA6.Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1.217 Sale price each_| $1,700 Total labor hours | 46,672 ‘Wage rate | S12/hour Total materials | $60,000 Total energy | $4,000 a.What is the multifactor productivity ratio? Ans 3.315 b.Calculate the productivity in sales revenue/labor expense? Ans 3.694 JCA8.Acme Corporation received the data below for its rodent cage production unit. Find the total productivity. Output Input 50,000 cages Production time 620 labor hours Sales price: $3.50 per unit Wages rate $12/hour Raw materials (total cost) $30,000 Components parts (total cost) $15,350 Ans 3.315JCA9.Two types of cars (Deluxe and Limited) were produced by a car manufacturer in 2008. Quantities sold, price per unit, and labor hours follow. What is the labor productivity for each car? QUANTITY [_S/UNIT Deluxe car | 4,000 units sold | $8,000/ear Limited car_| 6,000 units sold | '$9,500/car Labor, Deluxe | 20,000 hours | $12/hour Labor, 30,000 hours | Si4/hour limited Ans Productivity (hours) Deluxe 0.20, Limited 0.20 Productivity (dollars) Deluxe 133.33, Limited 135.71 JCA10.An clectronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,300 devices and took 25 workers two weeks (40 hours per week) to complete. The army contract was for 5,500 devices that were produced by 35 workers in three weeks. On which contract were the workers more productive? Ans navy 1.15; army 1.31 JACIL.A retail store had sales of $45,000 in April and $56,000 in May. The store employs eight full-time workers who work a 40-hour week. In April the store had seven part-time workers at 10 hours per week, and in May the store had nine part- timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity from April to May? Ans + 6.62% JACI2.A parcel delivery company delivered 103,000 packages in 2007, when its average employment was 84 drivers. In 2008 the firm handled 112,000 deliveries with 96 drivers. What was the percentage in productivity from 2007 to 2008? Ans - 4.85% SCJ13.A health-check clinic has five employees and processes 200 patients per week. Each employee works 35 hours per week. The clinie’s weekly total wage bill is $3900 and its total overhead expenses are $2000 per week. What is the clinic’s single-factor labour productivity and its multi-factor productivity? Ans 40patients/employee/week or 1.143patients/labour/hour; $0.0339/patient