Discussion & review.

8. Time based strategies focus on reducing the time required to accomplish various activities. For
examples; develop new products or services and market them, respond to a change in customer
demand, or deliver a product/perform a service.

9. a. Productivity expressed as the ratio of output to input.

b. Productivity measures can be used to judge the performance or the effective use of resources of an
entire industry, companies, or a country as a whole.

c. Because, productivity has several implications for business organizations and for entire nations. In
organizations/companies, for nonprofit organizations, higher productivity means lower costs. For profit
organizatons, productivity is an important factor in determining how competitive a company is. For a
nations, the high rates of productivity can reduce the risk of inflation and generate high standards of
living for the nations or country as a whole.

d. the Operations.

e. Productivity is about the quantity of work produced (output vs input). Efficiency is about doing the
correct things in the right way and also minimizing mistakes. In other word, Productivity focus on the
use of a lawn mower, Efficiency focus on the best way to use the tools.

Problem.

4.

a. Buying new equipment:

80 : 5 = 16 carts per worker/hour

After buying new equipment:

(80 + 4) : (5 – 1) = 21 carts per worker/hour

b. Prior to buying new equipment:

Labor: 5 x $10 = $50/hour

Equipment: $40/hour

80 / ($50 + $40) = 0.89 carts per Dollar

After buying new equipment:

Labor: 4 x $10 = $40/hour

Equipment: $40 + $10 = $50 hour

84 / ($40 + $50) = 0.93 carts per Dollar