Assignment One

 Question: A concrete mixer can produce 38 m3 of concrete by employing 5 workers

for 8 hours/day. Daily rate of one worker is 50 ETB/day. This daily production can be
increased to100m3/day by employing 3 more workers at the same rate.

a) Calculate the labor productivity for both cases.

b) Explain your answer
Solution
Given for Case 1
Number of worker = 5
Productivity = 38 m3 /day
Working hour per day = 8 hr. /day
Daily rate of one worker = 50 ETB/ day so, hourly rate for one labor = 50 ETB /8 = 6.25
ETB / hr.
Given for Case 2
Number of worker =8
Productivity = 100 m3 /day
Working hour per day = 8 hr. /day
Daily rate of one worker = 50 ETB/ day so, hourly rate for one labor = 50 ETB /8 = 6.25
ETB / hr.
 By using the construction productivity metrics
Construction labor productivity = output / total labor work hour
Labor productivity for Case 1
Construction labor productivity = output / total labor work hour
Construction labor productivity = 38 m3 /day / (5*8hr. /day)
Construction labor productivity = 38 m3 /day / 40 hr. /day
Construction labor productivity = 0.95 m3 /hr.
Unit rate: Total labor hourly cost / hourly production
Unit rate = (One labor hourly rate * number of labor) * / hourly production
Unit rate = (6.25 ETB *5) / 0.95 m3 /hr.) Unit rate = 32.9 ETB /m3 of concrete

Prepared by: Demewez Asfaw ID No. GSR/ 1338 / 11 Page 1 of 2

Labor productivity for Case 2
Construction labor productivity = output / total labor work hour
Construction labor productivity = 100 m3 /day / (8*8hr. /day)
Construction labor productivity = 100 m3 /day / 64 hr. /day
Construction labor productivity = 1.56 m3 /hr.
Unit rate: Total labor hourly cost / hourly production
Unit rate = (One labor hourly rate * number of labor) * / hourly production
Unit rate = (6.25 ETB *8) / 1.56 m3 /hr.)
Unit rate = 32 ETB /m3 of concrete
Explanation
As I can see from their productivity I understand that the effect of labor related factors
i.e. the crew composition and crew size on construction labor productivity.
When the number of labor increases from 5 to 8 their productivity on concrete work
increases from 38 m3 / day to 100 m3 /day, this indicates when the input (number of
labor and labor hour) increases the output (productivity) also increases
From their unit rate I can conclude that the unit rate using 8 labors is lower than the unit
rate sing 5 labors i.e. 32 ETB / m3 < 32.9 ETB/m3 so employing 8 labor is more
economical option than using 5 labors.
No. of Individual Total Output Output Labor cost
labor labor cost labor cost /day /employee / unit
Case 1 5 50 ETB 250 ETB 38 m3 7.6 m3 6.58 ETB/
m3
Case 2 8 50 ETB 400 ETB 100 m3 12.5 m 3 4 ETB / m3

 So when number of labor increased from 5 to 8 the labor productivity / employee

increases from 7.6 m3 to 12.5 m3 and the labor cost / unit decreases from 6.58
ETB/ m3 to 4 ETB / m3.

Prepared by: Demewez Asfaw ID No. GSR/ 1338 / 11 Page 2 of 2