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Problem Solving No

Problem Solving DSIOPMA
Course

Management (MGMT)

194 Documents
Students shared 194 documents in this course
Academic year: 2020/2021
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Abegail Muyot
De La Salle University
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MUYOT, Ma. Abegail J. K

Problem Solving No.

  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. Case 1. Case 2. Given: Given: Total output meals = 300 meals Total output meals = 240 meals Total input of labor = 8 workers Total input of labor = 6 workers Labor productivity = 300/8 = 37 Labor productivity = 240/6 = 40

The labor productivity of Case 2 was higher because they made more meals with less people. b. What are some possible reasons for the productivity differences? The improvement might have been attributed to greater capacity use, as we may not always require all 8 people; in reality, worker mismanagement is frequently the reason of idle capacity. There might also be an initial learning mechanism at work because the workers obviously understood what they're meant to be doing and could have done much better or quicker, resulting in increased production value. 2. The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures:

Week Crew Size Yards Installed Productivity

1 4 96 94/4 = 24

2 3 72 72/3 = 24

3 4 92 92/4 = 23

4 2 50 50/2 = 25

5 3 69 69/3 = 23

6 2 52 52/2 = 26

Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity? There’s better productivity with less people. By observing the aforesaid operation, it's been determined that whenever the crew size is two, the productivity of weeks four and six is high. As a result, it may be stated that the fewer the crew, the greater the production.

  1. Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1 times weekly labor cost. Material cost is $6 per pound.

Multi-Factor Productivity = output/inputs (labour + capital + material + energy + miscellaneous)

Week 1:

Output = 30,000 × 1 per chocolate = 30,

Inputs (labour cost + overhead cost + material cost)

Labour cost = 40 × $12 × 6 = $

Overhead cost = 1 ( × $2880 = 4320

Material cost = 450× 6 = 2700

Total inputs = $2880 + 4320 + 2700 = 9900

Multi- factor productivity = 30,000/9900 = 3.

Week 2:

Output= 33,600 × 1 per chocolate = 33,

Inputs (labour cost + overhead cost + material cost)

Labour cost = 40 × $12 × 7 = $

Overhead cost = 1 × $3360 = 5040

Material cost = 470× 6 = 2820

Total inputs = $3360 + 5040 + 2820 = 11220

Multi- factor productivity = 33,600/11220 = 2.

a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Prior to buying = 80/5 = 16 carts per worker per hour After buying = 84/4 = 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 = 105 = 50 + 40 = 90 80/90 = 0 carts per $ After buying = 104 = 40 + 50 = 90 84/90 = 0 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. Labor productivity increased by 31% Multifactor productivity increased by 4%

After purchasing a new equipment, the labor productivity increases. According to the multifactor productivity, the cost of producing each cart increases as new equipment is purchased. The multifactor productivity metric of carts produced per dollar is further relevant in this circumstance since it implies that each cart is generated at a reduced cost.

  1. 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 by eliminating the scrap?

72 pcs/hr produced are not scrap because of the 10% scrap rate 90% x (production + scrap) = 72 pcs/hr 0 = 72, x = 80 72 + scrap = 80s = 80 - 72 Potential increase in labor productivity 8/12 = 11%

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Problem Solving No

Course: Management (MGMT)

194 Documents
Students shared 194 documents in this course

University: De La Salle University

Was this document helpful?
MUYOT, Ma. Abegail J.
K39
Problem Solving No.1
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.
Case 1. Case 2.
Given: Given:
Total output meals = 300 meals Total output meals = 240 meals
Total input of labor = 8 workers Total input of labor = 6 workers
Labor productivity = 300/8 = 37.5 Labor productivity = 240/6 = 40
The labor productivity of Case 2 was higher because they made more meals with less
people.
b. What are some possible reasons for the productivity differences?
The improvement might have been attributed to greater capacity use, as we may not
always require all 8 people; in reality, worker mismanagement is frequently the reason
of idle capacity. There might also be an initial learning mechanism at work because the
workers obviously understood what they're meant to be doing and could have done
much better or quicker, resulting in increased production value.
2. The manager of a crew that installs carpeting has tracked the crew’s output over the
past several weeks, obtaining these figures:
Week
Crew Size
Yards Installed
Productivity
1
4
96
94/4 = 24
2
3
72
72/3 = 24
3
4
92
92/4 = 23
4
2
50
50/2 = 25
5
3
69
69/3 = 23
6
2
52
52/2 = 26

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