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Week
Crew size
Yards Installed
960
702
968
500
698
500
(b) On the basis of your calculation, what can you conclude about crew size and
productivity?
Ans:
(a) Productivity= Yards of carpet installed/ crew size=960/4= 240 yards/number of
crew.
Week
Crew size
Yards Installed
Labor productivity
960
240
702
234
968
242
500
250
698
232
500
250
(b) Probably even-sized crews are better than odd-sizes and a crew of 2 seems to
work best amongst the others.
3 (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.
Week
Output (units)
Workers
Materials (lbs)
30,000
450
33,600
470
32,200
460
35,400
480
Ans:
(a)
Worker cost
Week
Overhead
Output
cost
Materials
Total
cost
cost
MFP
(units)
12*40
30,000
2880
4320
2700
9900
3.03
33,600
3360
5040
2820
11220
2.99
32,200
3360
5040
2760
11160
2.89
35,400
3840
5740
2880
12480
2.84
=30000/9900= 3.03
6. A manager checked production records and found out that a worker produced
160 units while working 40 hours. In the previous week, the same worker
produced 138 units while working 36 hours. (a) Compute the workers
productivity. (b) Did his productivity increase, decrease or remain the same?
Briefly explain.
(a) Current productivity= produced units as output/ labor hour=160/40=4 unit per
hour
Current productivity= produced units as output/ labor hour=138/36=3.83 unit per
hour
(b)
Growth productivity= Current Period Productivity Previous Period Productivity
Previous Period Productivity
Growth productivity=4-3.83/3.83=0.044
Thus there was an increase of 4.4 % in productivity.