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Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a new-found interest in efficiency.

This question was answered on Jan 09, 2013. View the Answer
Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a new-found interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity. He has the following data:

Last Year Now
Units Produced 1,000 1,000
Labor (hours) 300 275
Resin (pounds) 50 45
Capital invested ($) 10,000 11,000
Energy (BTU) 3,000 2,850

Show the productivity change for each category and then determine the improvement for labor-hours, the typical standard for comparison.
Also, if Eric determines his costs to be as follows:
• Labor $10 per hour
• Resin $5 per pound
• Capital 1% per month of investment
• Energy $.50 per BTU

Show the productivity change, for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator.

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8418782.xlsx

OutPut Produced
Units Last year Now
1000
1000 Input Usage quantity Last year Now Labor (hours)
Resin (pounds)
Capital invested ($)
Energy (BTU) 300
50
10000
3000 Input Unit Costs
Labor ($/hours)...

This question was asked on Jan 09, 2013 and answered on Jan 09, 2013.

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