A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipm
ID: 451113 • Letter: A
Question
A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and the two employees worked 6 hours a day.
(a) What was their raw material and their labor productivity with the standard equipment?
(b) What is their raw material and their labor productivity with the larger machine?
(c) What is the change in each productivity measure?
Explanation / Answer
Resource
(a) Standard Equipment
(b) Larger Machine
(c) Percent Change
Solvent
70/10 = 7
60/12 = 5
5-7/7 = -28.57%
Labor
70/320 = 0.22
60/180 = .33
.33-.22/.22 = 50%
Resource
(a) Standard Equipment
(b) Larger Machine
(c) Percent Change
Solvent
70/10 = 7
60/12 = 5
5-7/7 = -28.57%
Labor
70/320 = 0.22
60/180 = .33
.33-.22/.22 = 50%
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