TIVE Profile Productivity Measurement Objective Cornerstone Exercise 15.3 In 20x
ID: 327830 • Letter: T
Question
TIVE Profile Productivity Measurement Objective Cornerstone Exercise 15.3 In 20x2, Choctaw Company implements a new process affecting labor and materials. The fol. lowing reported data are provided to evaluate the effect on the company's productivity: E 15.3 20x1 540,000 108,000 2,160,000 20x2 Number of units produced Labor hours used Materials used (lbs.) 450,000 75,000 1,500,000 Required: 1. Calculate the productivity profile for 20xl. 2. Calculate the productivity profile for 20x2, and comment on the effect of the new produc- tion and assembly process. What if the labor hours used in 20x2 were 112.500? What does comparison of the 20x1 and 20n2 profles now communicate? 3.Explanation / Answer
Q1) For 20*1,
Productivity (Labor) = 504000/108000 = 3 units/labor
Productivity (Material) = 540000/2160000 = 0.25 units/lb
Q2) For 20*2,
Productivity (Labor) = 450000/75000 = 6 units/labor
Productivity (Material) = 450000/1500000 = 0.3 units/lb
The productivity has increased due to the new production and assembly process.
Q4) If labor used in 20*2 is 112500,
Productivity (Labor) = 450000/112500 = 4 units/labor
Still profile for 20*2 is better compared to the 20*1 profile.
Q3)
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