Eric Johnson make billiard balls in his new England plant .With recent increase
ID: 445099 • Letter: E
Question
Eric Johnson make billiard balls in his new England plant .With recent increase in his cost he have a newfound interest in efficiency Eric in interest in determining the productivity of his organization he will like to know if his organization is maintaining the manufacture average of 3%ncrease in productivity he has the following data representing a month from last year and a equivalent month for this year
Last year
Now
Unit produced
1000
1000
Labor (hour)
300
275
Resin (pound)
50
45
Capital Investment $
10000
11000
Energy BTU
3000
2850
Show the productivity percentage change for each category and then determine the improvement for labor hours the typical standard for comparison
Step by step so i can understand
Last year
Now
Unit produced
1000
1000
Labor (hour)
300
275
Resin (pound)
50
45
Capital Investment $
10000
11000
Energy BTU
3000
2850
Explanation / Answer
Given Information :
Eric Johnson make billiard balls in his new England plant .
With recent increase in his cost he have a new found interest in efficiency
Eric in interest in determining the productivity of his organization he will like to know if his organization is maintaining the manufacture average of 3% increase in productivity .
We will see the result by three productivities :
1 ) Labor productivity: units produced / hours worked
Last Year = units produced / hours worked
=1000 /300
=3.33
Now = units produced / hours worked
= 1000/ 275
= 3.64
Change in % =( 3.64 - 3.33) / 3.33 *100
=Increase in 9.30 %
Here the Labor productivity increase that means in less labor more units are produced.
2 ) Capital productivity: output / capital input
Last Year =output / capital input
=1000 / 10000
=0.1
=10 %
Now =output / capital input
=1000/11000
= 0.090
=9.09 %
Change in % = (9.09 - 10)/10 * 100
= Decrease in 9.1 %
Here productivity decreases that means the capital investment which is done more is not helping to improve the productivity.
3 ) Material productivity: output /material input
Last Year = 1000 / 50
=20
Now =1000 / 45
=22.22
Change in % = (22.22 - 20)/20 * 100
= Increase in 11.1 %
Increase in material productivity by 11.1 % that means materials are efficiently used.
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