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    Awais Sadaqat
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    The productivity of a manufacturing process increased 48.85% after changes were made, as output rose from 60 to 75 units while labor hours only increased from 5 to 6. Material costs decreased from $16 to $10 per unit. Overhead costs increased slightly from $96 to $115.20 despite the productivity gains.

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    The productivity of a manufacturing process increased 48.85% after changes were made, as output rose from 60 to 75 units while labor hours only increased from 5 to 6. Material costs decreased from $16 to $10 per unit. Overhead costs increased slightly from $96 to $115.20 despite the productivity gains.

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    1 views2 pages

    Classroom Examples

    Uploaded by

    Awais Sadaqat
    The productivity of a manufacturing process increased 48.85% after changes were made, as output rose from 60 to 75 units while labor hours only increased from 5 to 6. Material costs decreased from $16 to $10 per unit. Overhead costs increased slightly from $96 to $115.20 despite the productivity gains.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    Before After

    Output 60 75
    Labor Number 5 6
    Labor Hourly Cost $ 12 $ 12
    Material $ 16 $ 10
    Overhead $ 96.00 $ 115.20

    Finished Unit SP $ 31 $ 31

    Productivity 1.667 2.481

    Productivity Increase 48.85%


    Before After Change %
    Labor Productivity 31.00 32.29 4.17%
    Material Productivity 1.94 3.10 60.00%
    Overhead Productivity 19.37 20.18 4.17%
    Actual Production 32000
    Effective Capacity 35000
    Design Capacity (hourly) 250

    Design Capacity (weekly) 42000

    Efficiency 91.43%
    Utilization 76.19%

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