ASSIGNMENT_Week 2

Chapter 2- Competitiveness, Strategy and Productivity

Reference: Production and Operations Management by: Stevenson, Sum
Problem Solving Exercise
1. Suppose that a company produced 300 standard bookcases last week using eight workers
and produced 240 standard bookcases using six workers. In which period was
productivity higher? Explain your answer.

 Last week production

300 standard bookcases / 8 workers = 37.5 standard bookcases productivity
This week production
240 standard bookcases / 6 workers = 40 standard bookcases productivity

 Between this week and last week productivity, this week got the higher
productivity of 40 versus 37.5 of last week. This shows that the productivity does
not rely on the numbers of workers, but how effective all the means of production
to produce an output.

2. The manager of a crew that installs carpeting has tracked the crew’s output over the past
several weeks, obtaining these figures
Week Crew size Meters
installed
1 4 960
2 3 702
3 4 968
4 2 500
5 3 696
6 2 500
Compute the labor productivity for each of the weeks. On the basis of your calculations,
what can you conclude about crew size and productivity?
 Productivity = Meter Installed / Crew Size

Week Crew Size Meter Installed Labor Productivity

1 4 960 240
2 3 702 234
3 4 968 242
4 2 500 250
5 3 696 232
6 2 500 250
  Based on the table above the crew size of 2 is the most efficient in labor
productivity. It also manifests a possibility that it is more efficient if the workers
are paired up or in odd number.

3. A manager checked production records and found that a worker produced 160 units while
working 40 hours. In the previous week, the same worker produced 138 units while
working 36 hours. Did the workers productivity increase, decrease or remain the same?
Explain

 The productivity of the previous week production of 138 units in 36 working hours has a
3.63 unit per hour. The present production got a 4 unit per hour of productivity in 140
units in 40 hours.
*140 unit / 40 hours = 4 unit per hour productivity
138 unit / 36 hours = 3.63 unit per hour productivity
This shows an increase in productivity of 10.19 % in productivity.
*4 (Current Productivity) – 3.63(Previous Productivity = 10.19% Growth Productivity
3.63(Previous Productivity)