Ch2_Assignment_Solution - 1 As Operations Manager you are...

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1. As Operations Manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report. JAN FEB MAR APR Units Produced 2300 1800 2800 3000 Hours per Machine 325 200 400 320 Number of Machines 3 5 4 4 Find the average monthly productivity (units per hour). Average productivity (2.36+1.80+1.75+2.34)/4= 2.06 3. Acme Corporation received the data below for its rodent cage production unit. Find the total productivity? Output Input 50,000 cages Production time 620 man hours Sales price: $3.50 per unit Wages $7.50 per hour Raw materials (total cost) $30,000 Component parts (total cost) $15,350 (50000*3.5)/((620*7.5)+30000+15350) = 3.5 6. Total Productivity Year Output in Dollars Input in Dollars Productivity (Output/Input) 2007 $200,000 $30,000 + 35,000 + 5,000 + 50,000 + 2,000 = $122,000 1.64 2008 $220,000 $40,000 + 45,000 + 6,000 + 50,000 +3,000 = $144,000 1.53 Partial Measure – Labor Year Output in Dollars Input in Dollars Productivity (Output/Input) 2007 $200,000 $30,000 6.67
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2008 $220,000 $40,000 5.50 Partial Measure – Raw Materials Year Output in Dollars Input in Dollars Productivity (Output/Input) 2007 $200,000 $35,000 5.71 2008 $220,000 $45,000 4.89 Partial Measure – Capital Year Output
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