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Average wage
of the worker is $3.00 per hour. To setup the assembling machines 4.8 million dollar has been
invested. The life of the machines is 10 years. There are 25 working days in a month and 12
working hours in a day. Last three years data is given in the following table:
i. Compute labor, overhead and overall productivity for each of the last three years (in every
possible way).
ii. The company is planning to implement TQM and new management at the beginning of the
year 2021. It is expected that the production rate of the TV would be increased by 20% from
2020 with an overhead cost of $55000 per month. Average no. of worker will be 130. Other costs
of resources remain as same as year 2020. Calculate new overall productivity and comments on
the expected change.