I.

LEARNING ACTIVITIES

Compute the following:

 A furniture manufacturing company has provided the following data. Compare the labor, raw
materials and supplies, and total productivity of 2018 and 2019
2018 2019
Output Sales value of P 22,000 P 35,000
production
Input Labor 10,000 15,000
Raw Materials and 8,000 12,500
supplies
Capital equipment 700 1,200
depreciation
Other 2,200 4,800

2018 2019

Total Measure Total Measure

Total Output/ Total Input Total Output/ Total Input
22,000/ 20,900=1.05 35,000/ 33,500=1.04

Multifactor Measure Multifactor Measure

Total Output/Labor+ Raw Total Output/ Labor+ Raw
Materials and Supplies Materials and Supplies
20,000/ 18,000= 1.22 35,000/27,000= 1.27

Partial Measure Partial Measure

Total Output/ Labor Total Output/ Labor
22,000/10,000=2.2 35,000/15,000=2.33

II. ASSIGNMENT
Compute the following:
1. As operations manager, you are concerned about being able to meet sales requirements
in the coming months. You have just been given the following production report.
Jan Feb Mar Apr
Units produced 2300 1800 2800 3500
Hours per machine 325 200 500 350
No. of Machines 3 5 4 4
 Find the average monthly productivity (units per hour)

=Hours per machine × number of machines

For January= 325×3= 975

For February= 200×5= 1000
For March= 500×4= 2000
For April= 350×4= 1400

Units per Machine hours

=Units produced/total hours

For January= 2300/975=2.36

For February= 1800/1000=1.8
For March= 2800/2000= 1.4
For April= 3500/1400=2.5
*(2.36+1.8+1.4+2.5÷4=2.02
=2.02 Units per Machine hours

2. Two types of cars (Deluxe and Limited) were produced by a car manufacturer in 2018.
Quantities sold, price per unit, and labor hours follow. What is the labor productivity for
each car?

Quantity $/Unit
Deluxe 4,000 units sold $ 8,000/car
Limited 6,000 units sold $ 9,500/car
Deluxe 20,000 hours $ 15/hour
Limited 30,000 hours $17/hour

Units sold× Cost per unit/ Number of hours× $ per hour

Units sold× Cost per unit

Deluxe= 4,000× 8,000= 32,000,000

Limited= 6,000× 9,500=57,000,000

Number of hours× $ per unit

Deluxe=20,000×$15=300,000

Limited= 30,000×$17= 510,000

Total output/ Labor input

32,000,000/300,000=106.66

57,000,000/510,000=111.76