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SOM HW #1 - weekly homework mandatory 30% of grade.
Operations Management (SOM 306)
California State University, Northridge
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Karina Arakelian SOM 306, Tues. Thurs. January 31, 2017 Chapter 2: (pp. 1) A catering company prepared and served 300 meals at an anniversary celebration last week using eight workers. The week before, six workers prepared and served 240 meals at a wedding reception. a) For which event was the labor productivity higher? Explain. 37 40 The productivity of the first week was higher because they ended up making more meals with fewer workers. b) What are some possible reasons for the productivity differences? Just the overall work ethic of different workers could be possible reason for the difference. Or even the possibility that some were more thoroughly trained versus others. 2) The manager of a crew that installs carpeting has tracked the output over the past several weeks. Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity? Productivity: Week 24 24 23 25 23 26 The productivity is higher with fewer workers. 3) Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40hour weeks and an hourly wage of Overhead is 1 times weekly labor cost. Material cost is per pound. Week 1: 9900 3 Week 2: 33,600 33,600 11220 2 Week 3: 2 Week 4: 35,400 12420 2 The productivity dropped gradually from about 3 to about 2 4) A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive per hour, and machine cost was per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased per hour while output increased four carts per hour. a) Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Prior to buying: 16 carts per worker per hour After buying: 21 carts per worker per hour b) Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. Prior to buying: 50 40 90 .89 carts per After buying: 40 50 90 .93 carts per c) Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation. The labor productivity increased 31 percent, the multifactor productivity increased 4 percent. 5) An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved eliminating the scrap? . 90x 72 therefore s Potential increase in labor productivity would be 6) A manager checked production records and found that a worker produced 160 units while working 40 hours. In the previous week, the same worker produced 138 units while working 36 hours. Did the productivity increase, decrease, or remain the same? Explain. 4 The increase of 4 hours increased productivity .167 and output 22
SOM HW #1 - weekly homework mandatory 30% of grade.
Course: Operations Management (SOM 306)
University: California State University, Northridge
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