Problem 1

In an insurance company, three employees in the claims department process 60

insurance policies in a week. They work 8 hours per day and 5 days per week.
Determine the labor productivity.

Employees
Hours per day
Days per week
No. of Insurance policies processed
Labor Productivity

Problem 2
Johan makes wooden boxes for a customer. Johan and his three employ
making the 120 boxes. What is their productivity? Johan and his employ
the process to improve efficiency. If they can increase the rate to 140 p
productivity? What will be their increase in productivity?

Old process
Number of boxes produced
Number of hours invested per day
Productivity
Percent change in productivity

Problem 3
A team of workers make 530 units of a product, which is valued at its standa
before markups and profit. The accounting department reports that for this j
are $500 for labor, $1100 for materials, and $400 for overhead. Determine th
productivity

No. of units produced

Standard cost
Labor cost
Material cost
Overhead
Multifactor productivity

Problem 4
In a commercial branch of a bank five tellers served a total of 2400 customers over
a period of one week. The banks working hours are 10 AM to 4 PM. Determine the
productivity of the tellers. Assume a 5-days week.

Number of customers served

Number of tellers
Hours per day (from 10 AM to 4 PM)
Days per week
Productivity of the tellers
 Problem 5
The manager of a crew that installs carpeting has tracked the crew's ou
several weeks, obtaining the figures below. What is the labor productivi
week? On the basis of your calculations, what can you conclude about t
yields the highest productivity?

Productivity= (Yards installed)/(Crew

Week
size)
1
2
3
4
5
6

Problem 6

Martin Manufacturing uses two measures of productivity: a) total sales/

inputs, b) total sales/total labor inputs.  Given data for the last three ye
calculate the productivity ratios.  How would you interpret the results?
'000 s of dollars.

Year 1
Sales
Materials
Labor
Overhead
 Total inputs
Total sales / total inputs
Percent change
Total sales / total labor inputs
Percent change

Problem 7

Fast Forward Co has generated productivity data for the first two quarte
Using dollar measures of input and output, compare the total profit and p
achieved for the first two quarters.  How does Q2 productivity compare w
productivity?  Identify what might be done to improve productivity and p
Q3.

Q1
Unit selling price, $ 20
Total units sold 10,000
Labor hours 9,000
Labor cost/hr, $ 10
Material usage (lb) 5,000
Material cost/lb, $ 15
Other costs, $ 20,000

Output in $
Labor input in $
Material input in $
Total input in $
Productivity -total factor
Productivity - Labor
Productivity -Material
Profit (= Total sales - total cost)

Problem 8

Super Industries have collected data about the old system and the new
system and would like to compare the productivity in terms of labor and
total factors. Is there an improvement in productivity?
 Super Industries have collected data about the old system and the new
system and would like to compare the productivity in terms of labor and
total factors. Is there an improvement in productivity?

Old system
Output/hr
Workers
Wage $/hr
Machine $/hr

Labor productivity, units per worker

TFP Productivity, units per dollar

Problem 9

Wearwell produces fashionable garments. During a particular wee

work 360 hours to produce a batch of 132 garments of which 52 w
because of some defects. Seconds are sold for $90 each at the fact
The remaining 80 garments are sold to retail distribution at $200 e
the labor productivity ratio of this manufacturing process in financ
operational units?

Total garments produced

Total input labor hours
Garements with defects
Garments without defects
Selling price of defective garments
 Selling price of good garments
Total revenue generated
Labor productivity -
operational, garments per hour
Labor productivity -
financial, dollars per hour

Problem 10

A retail store had sales of $ 45,000 in April and $ 56,000 in May. The store em
time workers who work a 40 hour week. In Week 1 the store also had seven p
10 hours per week and in Week 2 the store had nine part-time workers at 15 h
Using sales value as the measure of output, what is the percentage change in
April to May?

Week 1
Sales in $
Full time workers
Full time hours
Part time workers
Part time hours
Total labor hours
Labor productivity, $ per hour
Percent change in labor productivity

Problem 11
Compare the productivity on we
Industries given the data in the
comment? Each worker puts in
Selling price is $140 per unit.
Week

1
2
3
4
5
6
7
 laims department process 600
er day and 5 days per week.

Answer

ohan and his three employees invest 40 hours per day

ity? Johan and his employees have discussed redesigning
increase the rate to 140 per day, what will be their new
oductivity?

New process

Answer
Answer 𝑷𝒆𝒓𝒄𝒆𝒏𝒕 𝒄𝒉𝒂𝒏𝒈𝒆= ((𝑵𝒆𝒘 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 −𝑶𝒍𝒅
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚) 𝑿 𝟏𝟎𝟎)/(𝑶𝒍𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚)
which is valued at its standard cost of $14 each
tment reports that for this job the actual costs
for overhead. Determine the multifactor

Number produced at standard cost

Multifactor productivity =
Labor cost + Materials cost + Overhead cost

(530 units) ($14 per unit)

Multifactor productivity =  3.71
Answer $500 + $1100 + $400

a total of 2400 customers over

0 AM to 4 PM. Determine the

Answer
has tracked the crew's output over the past
hat is the labor productivity per person for each
can you conclude about the crew size which

Yards
Crew size Productivity
installed
4 960
3 702
4 968
2 500
3 696
2 500

roductivity: a) total sales/total

data for the last three years,
you interpret the results? Figures in

Year 2 Year3
 Answer

Answer

ata for the first two quarters of the year.

mpare the total profit and productivity
Q2 productivity compare with Q1
mprove productivity and profitability during

Q2
21
8,500
8,000
10
4,500
15.5
18,000

e old system and the new

tivity in terms of labor and
uctivity?
e old system and the new
tivity in terms of labor and
uctivity?

New system

During a particular week employees

garments of which 52 were seconds
for $90 each at the factory outlet store.
ail distribution at $200 each. What is
cturing process in financial and
 6,000 in May. The store employs eight full-
1 the store also had seven part-time workers at
e part-time workers at 15 hours per week.
the percentage change in productivity from

Week 2

are the productivity on weekly basis at Calvin

tries given the data in the Table. What do you
ment? Each worker puts in 40 hours of labor per week.
g price is $140 per unit.
 Total Material cost Total Labor
Output (Units) Workers Materials (lb)
(per lb = $6) cost ($12/h)
300 6 45
338 7 46
322 7 46
354 8 48
222 5 40
265 6 42
310 7 46
 𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 −𝑶𝒍𝒅
𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚)
duced at standard cost
erials cost + Overhead cost

nits) ($14 per unit)

 3.71
+ $1100 + $400
Overhead = 1.5 * Total Total Multi factor
Weekly labor cost cost revenue productivity