NameT 3. Draw and label the Kano model including each of the axis (named on each

Question

NameT 3. Draw and label the Kano model including each of the axis (named on each end,) each of the curves and the direction of the time continuum () 4. Modern Lumber, Inc. (MLI) produces apple crates, which it sells to growers. With the current equipment, MLI produces 240 crates per 100 logs. It currently purchases 100 logs per day, and each log requires three labor hours to process. MLI is considering the hire of a professional buyer who can buy better quality logs at the same cost. If this is the case, MLI can increase production to 260 crates per 100 logs, and the labor hours required will increase by eight hours per day (for the buyer). a. Compute the labor productivity for the current method (i.e., no buyer). (3) b. What will the labor productivity be if MLI hires the professional buyer? (3) Suppose that MLI spends $12 per hour for each worker who constructs the crates. The buyer, however, is paid $24 per hour. The material cost is $10 per log (regardless of who purchases them). C. Compute the multifactor productivity for the current method, using crates per dollar cost (labor+ materials) as the measure. (5) d. How does the multifactor productivity change (rate if increase) if the professional buyer is hired? (S)

Explanation / Answer

4. Modern Liumber, Inc.

a. Labor productivity of the current method = 240 / (100*3) = 0.80 crates per worker-hour

b. Labor productivity if MLI hires the professional buyer = 260/(100*3 + 8) = 0.844 crates per worker-hour

c. Multifactor productivity for the current method = 240 / (100*3*12 + 100*10) = 0.052 crates per dollar cost

d. Multifactor productivity if professional buyer is hired = 260 / (100*3*12 + 8*24 + 100*10) = 0.054 crates per dollar cost

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