Operations Management Please show how to do this so I can do it for the next pro

Question

Operations Management

Please show how to do this so I can do it for the next problem. Thank you.

George Kyparisis makes bearing balls in his Miami plant. With recent increase in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if this organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last and an equivalent month this year:

Explanation / Answer

Answer:

for labor-hours,

the typical standard for comparisonUnits

Produced: (1000-1000) / 1000 = 0 = 0%

There is no change in the units produced.

Labor: (275-300)/300 = -0.083 = (8.3%)

The labor hours has reduced 8.3%.

Resin: (45-50)/50 = -0.1 = (10%)

The use of resin has reduced 10%.

Capital: (11,000-10,000)/10,000 = 0.1 = 10%

The capital has increased 10%.

Energy: (2,850-3,000)/3,000 = -0.05 = (5%)

The use of energy has reduced 5%.

Last year labor productivity:1000/300 = 3.33 units / labor hour

Current year labor productivity:1000/275 = 3.64 units / labor hour

Percentage change in productivity:

(3.64-3.33) / 3.33 = 0.093 = 9.3%

The productivity has increased 9.3%.

So, Eric Johnson’s organization is successful to maintain the manufacturing average of 3% increase in productivity.

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