Tutorial2

# Tutorial2 - 80 carts per hour Workers receive \$10 per hour...

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The German University in Cairo (GUC) Winter 2010 Faculty of Management Technology Dr. Sherwat Elwan Operations Management Department OPER501 Problems: 1. Suppose that a company produced 300 standard bookcases last week using eight workers and  produced 240 standard bookcases this week using six workers. In which period was productivity  higher? Explain. 2. Compute the multifactor productivity measure for each of the weeks shown. What do the  productivity figures suggest? Assume 40-hour weeks and an hourly wage of \$12. Overhead is 1.5  times weekly labor cost. Material cost is \$6 per pound. 3. A company that makes shopping carts for supermarkets and other stores recently purchased some  new equipment that reduces the labor content of the jobs needed to produce the shopping carts.  Prior to buying the new equipment, the company used five workers, who produced an average of
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Unformatted text preview: 80 carts per hour. Workers receive \$10 per hour, and machine cost was \$40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by \$10 per hour while output increased by four carts per hour. 1. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. 2. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. 3. Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation. Tutorial 2 Week 2 (08/10/2011 - 13/10/2011) Subject Competitiveness, Strategy and productivity...
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• Spring '11