CHAPTER 1

PROBLEM 1. 5
Lori produces “Final Exam Care Packages” for
resale by her sorority. She is currently working
a total of 5 hours per day to produce 100 care
packages.
a) What is Lori’s productivity?
b) Lori thinks that by redesigning the package, she can
increase her total productivity to 133 care packages
per day. What will be her new productivity?
c) What will be the percentage increase in productivity
if Lori makes the change?
 CHAPTER 1
PROBLEM 1. 8
Keen Karpet cleaned 65 rugs in October, consuming the
following resources:
Labor: 520 hours at $13 per hour
Solvent: 100 gallons at $5 per gallon
Machine rental: 20 days at $50 per day

a) What is the labor productivity per dollar?

b) What is the multifactor productivity?

 Additional Problem
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?
Solution to Additional Problem:
8 hours per day
Current productivity =  4 problems per day
2 hours per problem

7 hours per day

Productivity with computer =  7 problems per day
1 hour per problem

74 3 
Productivity improves 75%    .75 
 4 4 