Professional Documents
Culture Documents
1.8
Last year Now
Labor $3000 $2750
Resin $250 $225
Capital Expense $100 $110
Energy $1500 $1425
Total cost $4850 $4510
Multifactor productivity last year: 1000/4850= 0.206 units/dollar
Multifactor productivity present: 1000/4510= 0.222 units/dollar
Using last year productivity as a base, the percentage change will be: (0.222-0.206)/0.206= 7.8%
Multifactor productivity for one month
0.23
0.22
0.22
0.21
0.21
0.2
0.2
Last year Now
1.14
a)
The productivity before the change in work rules:
Productivity = 500/(2x10) = 25 boxes/labor-hour
The productivity after the change in work rules:
Productivity = 650/(3x8) = 27.08 boxes/labor-hour
b) The percentage increase in productivity = [(27.08 – 25)/25]x100% = 8.32%
c) The new productivity = 700/(3x8) = 29.17 boxes/labor-hour