A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $1.6 per minute. Clients are charged a fee of $430. Company A’s software would reduce the average search time by 14 minutes, at a cost of $3.0 per search. Company B’s software would reduce the average search time by 16 minutes at a cost of $5.2 per search. a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) Approach Productivity per Dollar Input Current $ 6.72 Company A $ 9.64 Company B $ 9.86 ________________________________________ b. Which option would have the highest productivity in terms of revenue per dollar of input? Company B

A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost is $1.6 per minute. Clients are charged a fee of $430. Company A’s software would reduce the average search time by 14 minutes, at a cost of $3.0 per search. Company B’s software would reduce the average search time by 16 minutes at a cost of $5.2 per search.

   

a.	Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

   

Approach	Productivity per      Dollar Input
Current	$ 6.72
Company A	$ 9.64
Company B	$ 9.86

   

b.	Which option would have the highest productivity in terms of revenue per dollar of input?
	Company B

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $40, the overhead rate is 1.0 times labor cost, and material cost is $8 per customer. Unit Employees Customers Processed / Day A 4 32 B 4 46 C 9 60 D 3 24 ________________________________________ a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.) Unit Labor Productivity Multifactor Productivity A 8.0 0.011 B 11.5 0.016 C 6.7 0.010 D 8.0 0.011 ________________________________________ b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 4 decimal places.) Unit Labor Productivity Multifactor Productivity A 9.0 0.0126 B 12.5 0.0169 C 7.7 0.0109 D 9.0 0.0126 ________________________________________

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $40, the overhead rate is 1.0 times labor cost, and material cost is $8 per customer.

   

Unit	Employees	Customers Processed / Day
A	4	32
B	4	46
C	9	60
D	3	24

   

a.	Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)

   

Unit	Labor        Productivity	Multifactor         Productivity
A	8.0	0.011
B	11.5	0.016
C	6.7	0.010
D	8.0	0.011

   

b.

Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 4 decimal places.)

   

Unit	Labor        Productivity	Multifactor             Productivity
A	9.0	0.0126
B	12.5	0.0169
C	7.7	0.0109
D	9.0	0.0126

An operation has a 25 percent scrap rate. As a result, 74 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "%" sign in your response.) This would amount to an increase of 33.3 %

An operation has a 25 percent scrap rate. As a result, 74 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "%" sign in your response.)

    

This would amount to an increase of

33.3  %

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 6 workers, who produced an average of 80 carts per hour. Workers receive $15 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 6 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 2 decimal places.) Before 13.33 carts per worker per hour After 17.20 carts per worker per hour b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 2 decimal places.) Before 0.67 carts/$1 After 0.74 carts/$1 c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "%" signs in your response.) Labor productivity increased by 29.03 % Multifactor productivity increased by 10.45 %

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 6 workers, who produced an average of 80 carts per hour. Workers receive $15 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 6 carts per hour.

    

a.	Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 2 decimal places.)

    

Before	13.33	carts per worker per hour
After	17.20	carts per worker per hour

   

b.	Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 2 decimal places.)

    

Before	0.67	carts/$1
After	0.74	carts/$1

    

c.	Comment on the changes in productivity according to the two measures. (Round your intermediate calculations and final answers to 2 decimal places. Omit the  "%" signs in your response.)

    

Labor productivity	increased  by 29.03  %
Multifactor productivity	increased  by 10.45  %

Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $14. Overhead is 1.5 times weekly labor cost. Material cost is $9 per pound. (Round your answers to 2 decimal places.) Week Output (units) Workers Material (lbs) 1 29,000 5 470 2 33,000 8 490 3 31,000 8 540 4 35,000 10 570 ________________________________________ Week MFP 1 2.58 2 2.11 3 1.93 4 1.83 ________________________________________ rev: 03_15_2012

Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $14. Overhead is 1.5 times weekly labor cost. Material cost is $9 per pound. (Round your answers to 2 decimal places.)

   

Week	Output (units)	Workers	Material (lbs)
1	29,000	5	470
2	33,000	8	490
3	31,000	8	540
4	35,000	10	570

    

Week	MFP
1	2.58
2	2.11
3	1.93
4	1.83

rev: 03_15_2012

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 1 4 98 2 3 71 3 4 99 4 2 54 5 3 60 6 2 54 ________________________________________ a. Compute the labor productivity for each of the weeks. (Round your answers to 2 decimal places.) Week Crew size Labour productivity (Yards) 1 4 24.50 2 3 23.67 3 4 24.75 4 2 27.00 5 3 20.00 6 2 27.00 ________________________________________ b. On the basis of your calculations, what can you conclude about crew size and productivity? Possibly even sized crews are better than odd sizes and a crew of 2 seems to work best.

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
1	4	98
2	3	71
3	4	99
4	2	54
5	3	60
6	2	54

    

a.	Compute the labor productivity for each of the weeks. (Round your answers to 2 decimal places.)

    

Week	Crew size	Labour productivity    (Yards)
1	4	24.50
2	3	23.67
3	4	24.75
4	2	27.00
5	3	20.00
6	2	27.00

   

b.	On the basis of your calculations, what can you conclude about crew size and productivity?

    

Possibly even   sized crews are better than odd   sizes and a crew of  2   seems to work best.

A catering company prepared and served 335 meals at an anniversary celebration last week using seven workers. The week before, five workers prepared and served 260 meals at a wedding reception. a1. Calculate the labor productivity for each event. (Round your answers to 1 decimal place.) Anniversary 47.9 meals/worker Wedding 52.0 meals/worker a2. For which event was the labor productivity higher? Wedding

A catering company prepared and served 335 meals at an anniversary celebration last week using seven workers. The week before, five workers prepared and served 260 meals at a wedding reception.

   

a1.	Calculate the labor productivity for each event. (Round your answers to 1 decimal place.)

   

Anniversary	47.9	meals/worker
Wedding	52.0	meals/worker

    

a2.	For which event was the labor productivity higher?
	Wedding