Questions

Operations and Productivity

1. A foundry produces circular utility access
hatches (manhole covers). If 120 covers are
produced in a 10-hour shift, the productivity
of the line is:
A) 1.2 covers/hr.
B) 2 covers/hr.
C) 12 covers/hr.
D) 1200 covers/hr.
2. A foundry produces circular utility access
hatches (manhole covers). Currently, 120
covers are produced in a 10-hour shift. If
labor productivity can be increased by
20%, it would then be:
A) 14.4 covers/hr.
B) 24 covers/hr.
C) 240 covers/hr.
D) 10 covers/hr.
3. Gibson Valves produces cast bronze valves
on an assembly line, currently producing
1600 valves per shift. If the production is
increased to 2000 valves per shift, labor
productivity will increase by:
A) 10%.
B) 20%.
C) 25%.
D) 40%.
4. The Dulac Box plant produces 500 cypress
packing boxes in two 10-hour shifts. What
is the productivity of the plant?
A) 25 boxes/hr.
B) 50 boxes/hr.
C) 5000 boxes/hr.
D) 0.04 boxes/hr.
Answers
• MCQ
1- c
2-a
3-c
4-a
Problem 1

• 7040 Units Produced

• Cost of labor of £1,000
• Cost of materials: £ 520
• Cost of overhead: £ 2000
What is the multifactor productivity?
Problem 2
• Mance Fraily, the Production Manager at Ralts
Mills, can currently expect his operation to
produce 1000 square yards of fabric for each ton
of raw cotton. Each ton of raw cotton requires 5
labor hours to process. He believes that he can buy
a better quality raw cotton, which will enable him
to produce 1200 square yards per ton of raw
cotton with the same labor hours.
• What will be the impact on productivity
(measured in square yards per labor-hour) if he
purchases the higher quality raw cotton?
 Answer

• Current = 1000/ 1*5 = 200 sq yds per hour

• New = 1200/1*5 = 250 sq yds per hour
• Productivity improves 20% = ( 240 - 200 ) /
200 = .2
Problem 3:
• C. A. Ratchet, the local auto mechanic, finds that
it usually takes him 2 hours to diagnose and fix a
typical problem. What is his daily productivity
(assume an 8 hour day)?
• Mr. Ratchet believes he can purchase a small
computer trouble-shooting device, which will
allow him to find and fix a problem in the
incredible (at least to his customers!) time of 1
hour. He will, however, have to spend an extra
hour each morning adjusting the computerized
diagnostic device. What will be the impact on his
productivity if he purchases the device?
 Answer

• Current = 8/ 2 = 4 problems per day

• New with computer = 7/1 = 7 problems per
day
• Productivity improves 75% = ( 7 - 4) / 4 =
.75
Problem 4:
• Joanna French is currently working a total of 12
hours per day to produce 240 dolls. She thinks that
by changing the paint used for the facial features
and fingernails that she can increase her rate to
360 dolls per day. Total material cost for each doll
is approximately $3.50; she has to invest $20 in
the necessary supplies (expendables) per day;
energy costs are assumed to be only $4.00 per day;
and she thinks she should be making $10 per hour
for her time. Viewing this from a total
(multifactor) productivity perspective, what is her
productivity at present and with the new paint?
Currently Using the new paint

Labor 12 hrs * $10 = $120 12 hrs * $10 = $ 120

Material 240 * $3.50 = $840 360 * $3.50 = $1260

Supplies = $ 20 = $ 20

Energy =$ 4 =$ 4

Total Inputs = $984 = $1404

Productivity 240/984 = 0.24 360/1404 = .26

Thank you

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