Chapter 4- Solved Problems

Problem 1
Jimmy owns a lawn service company. With its current equipment, his company is able to
service 126 lawns per week based on three people working six eight-hour days. What is
Jimmy’s Lawn Service’s current labor productivity?

Answer Problem 1
Jimmy currently employs 3 people working six eight-hour days for a total of 144 hours of
labor per week. They currently service 126 lawns. Therefore, the rate of productivity is:

126
Pr oductivity
=
144

Productivity = .875 lawns per hour

Problem 2
Jimmy’s Lawn Service from problem 1 has the opportunity to take advantage of a sale at
Jimmy’s local lawn and hardware dealer. The dealer is running a sale on lawn equipment.
Jimmy believes that by purchasing a new tractor for $2600, he would be able to increase
the number of lawns serviced to 148 per week, but he would have to add an additional
employee to operate the tractor. Based on labor productivity, should Jimmy purchase the
tractor?

Answer Problem 2
Jimmy currently employs 3 people working six eight-hour days. Adding an employee
would increase total labor hours available to 192 hours per week. Therefore, the rate of
productivity is:

148
Pr oductivity
=
192

Productivity = .77 lawns per hour

Since Jimmy currently produces .875 lawns per hour, it is apparent that his labor
productivity would decrease. The recommendation would be that he not purchase the new
mower.
Problem 3
Based on historic data, a project manager believes that a paving company should be able
to lay .5 miles of road per week. Last week the crews paved .63 miles of road. What was
the crew’s level of efficiency last week?

Answer Problem 3
Efficiency = 100% (actual/standard)

 .63 
Efficiency    * 100%
 .5 

Efficiency = 126 %