You are on page 1of 2

Viewing this from a total (multifactor) productivity perspective, what is her productivity at

present and with the new paint?


 
Present: 
Given: 
# of dolls= 240
Supplies cost = $20
Energy cost = $4
Labor cost = 12 hours per day*10 per hour = $120
Material cost = 3.50 per doll * 240 dolls= $840
 
Formula:
total (multifactor) productivity  = # of dolls/ (Total costs)
 
Total cost: Labor + material + supplies + energy
Total cost: 120 + 840 +20 + 4 
Total cost = 984
 
total (multifactor) productivity  =240/984
total (multifactor) productivity  =0.24
 
New: 
Given: 
# of dolls= 360
Supplies cost = $20
Energy cost = $4
Labor cost = 12 hours per day*10 per hour = $120
Material cost = 3.50 per doll * 360 dolls= $1260
 
Formula:
total (multifactor) productivity  = # of dolls/ (Total costs)
 
Total cost: Labor + material + supplies + energy
Total cost: 120 +1260 +20 + 4 
Total cost = 1404
 
total (multifactor) productivity  =360/ 1404
total (multifactor) productivity  =0.26
 
How would total (multifactor) productivity change if using the new paint raised Ms. French's
material costs by $0.50 per doll?
Given: 
3.50 + 0.50 = $4
# of dolls= 360
Supplies cost = $20
Energy cost = $4
Labor cost = 12 hours per day*10 per hour = $120
Material cost = 4 per doll * 360 dolls= $1440
 
Total cost: Labor + material + supplies + energy
Total cost: 120 +1440 +20 + 4 
Total cost = 1584
 
total (multifactor) productivity  =360/ 1584
total (multifactor) productivity  =0.23

You might also like