This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: the company’s strengths (core competencies). These three factors are critical to the development of the company’s long-range plan, or business strategy. Prob. 6-8 6. The productivity of Aztec furnishings has increased dramatically. It went from producing 50 (60-10 defective) pieces of furniture a day to producing 89 (90-1 defective) pieces. Output has increased by 39 pieces of furniture a day. 7. a) PRODUCTIVY RATIO FOR OLD PRODUCTION SYSTEM (20000 units*15% defective)=3000 defective, 20000-30000=17000 units=monthly output (8 hrs*5 days)=40 hrs*4weeks=160 hrs=monthly labor 17000/160=106.25 Productivity=106.25 PRODUCTIVITY FOR NEW PRODUCTIVE SYSTEM 25000*9%=2250, 25000-2250=22750 22750/160=142.1875 b) The productivity increased from the old production system to the new. The new system produces more output with less defective items. 8. a) MULTIFACTOR PRODUCTIVITY RATIO 60/(15+20+20)=1.09 b) LABOR PRODUCTIVITY RATIO 60/3=20...
View Full Document
- Spring '11
- Management, 5 days, 4weeks, Rolando Hernandez