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1. Suppose that a company produced 300 standard bookcases last week using eight
workers and produced 240 standard bookcases this week using six workers. In
which was productivity higher? Explain.
The ouput of this week shows that it has higher productivity than last week. This
answer can be improved.
2. The manager of a crew that installs carpeting has tracked the crew’s output
over the past several weeks, obtaining these figures.
1 4 960
2 3 702
3 4 968
4 2 500
5 3 698
6 2 500
Ans:
1 4 960 240
2 3 702 234
3 4 968 242
4 2 500 250
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed. 2
Operations and Production Management MGMT 405 Answer set 2
5 3 698 232
6 2 500 250
(b) Probably even-sized crews are better than odd-sizes and a crew of 2 seems to
work best amongst the others.
2. (a) Compute the multi-factor productivity measure for each of the weeks
shown. (b) What do the productivity figures suggest? Assume 40 hour weeks
and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material
cost is $ 6 per pound.
1 30,000 6 450
2 33,600 7 470
3 32,200 7 460
4 35,400 8 480
Ans:
(a)
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed. 3
Operations and Production Management MGMT 405 Answer set 2
Overhead
Worker cost Materials Total MFP
Output cost
Week cost cost
(units) 12*40
(c) Multi-factor productivity dropped steadily from a high of 3.03 to about 2.84
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed. 4
Operations and Production Management MGMT 405 Answer set 2
(a) Current productivity= produced units as output/ labor hour=160/40=4 unit per
hour
(b)
Growth productivity=4-3.83/3.83=0.044
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed. 5