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Problem 1:Mance Fraily, the Production Manager at Ralts Mills, can currently expect his operation to produce 1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 labor hours to process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square yards per ton of raw cotton with the same labor hours.What will be the impact on productivity (measured in square yards per labor-hour) if he purchases the higher quality raw cotton?ANSWER: Productivity improves 20% = ( 240 - 200 ) / 200 =0.2Problem 2: 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?ANSWER: Problem 3:Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 360 dolls per day. Total material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time. Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint?CurrentlyUsing the new paintLabor12 hrs * $10= $12012 hrs * $10= $ 120Material240 * $3.50= $840360 * $3.50= $1260Supplies= $ 20= $ 20Energy= $ 4= $ 4Total Inputs= $984= $1404Productivity240/984= 0.24360/1404= .26Problem 4:How would total (multifactor) productivity change if using the new paint raised Ms. Frenchs material costs by $0.50 per doll?ANSWER:If the material costs increase by $0.50 per doll:Using the new paintLabor12 hrs * $10= $ 120Material360 * $4.00= $1440Supplies= $ 20Energy= $ 4Total Inputs= $1584Productivity 360/1584= 0.23Problem 5:If she uses the new paint, by what amount could Ms. Frenchs material costs increase without reducing total (multifactor) productivity?ANSWER: From the answer to Problem 3 we know the following:CurrentlyUsing the new paintLabor12 hrs * $10= $12012 hrs * $10= $ 120Material240 * $3.50= $840360 * $3.50= $1260Supplies= $ 20= $ 20Energy= $ 4= $ 4Total Inputs= $984= $1404Productivity240/984= 0.24360/1404= .26We want to know how high the material cost could go, using the new paint, before the productivity drops to the current level of 0.24. In mathematical terms we make the material cost a variable (X), set the new multifactor productivity value to the current level, 0.24, and solve for X.360/($12x10) + 360 $(X) + $20 + $4) = 0.24360 = 0.24($120 + 360$(X) + $20 + $4) 360 = $28.8 + 86.4$(X) + $4.8 + $.96325.44 = 86.4$(X)$(X)= 325.44/86.4 = $3.7666 $3.77It follows then that the new paint could raise Materials cost by no more than approximately $0.27 (the difference between $3.77 and $3.50) before Ms. French would experience a decrease in multifactor productivity. 1. Student tuition at Boehring University is $150 per semester credit hour. The state supplements school revenue by $100 per semester credit hour. Average class size for atypical 3-credit course is 50 students. Labor costs are $4,000 per class, material costs are $20 per student per class, and overhead costs are $25,000 per classa. What is the multifactor productivity ratio for this course process?b. If instructors work an average of 14 hours per week for 16 weeks for each 3-credit class of 50 students, what is the labor productivity ratio?2Natalie Attire makes fashionable garments. During a particular week employees worked 360 hours to produce a batch of 132 garments, of which 52 were “seconds” (meaning that they were flawed). Seconds are sold for $90 each at Attires Factory Outlet Store. The remaining 80 garments are sold to retail distribution at $200 each. What is the labor productivity ratio of this manufacturing process?31.2 Riverside Metal Works produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. Calculate the labor productivity of the line.4.5. Efficiency A measure of process performance; the ratio of actual
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