Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 2, Problem 13P
Summary Introduction
Interpretation: With the availability of values of multifactor productivity of two plants, identify the plant which is performing with higher productivity.
Concept Introduction: The term productivity is used to denote the ratio of output to input in percent. The output and input must refer to the same resource say labor, machine hours, quality, etc. This indicates single factor productivity because it relates to only one resource of the process.
However, it is possible to design productivity measures for more than one factors and such productivity index is, then called multi-factor productivity. (It could be given any other term by the organization e.g. overall productivity etc.).
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A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburger. Current employment is i ve full-time employees who each work a 40-hour week. If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is its productivity? What would its productivity have been if it had sold the same number of sandwiches (2,100), but the mix was 700 of each type?
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A company has collected the data as shown in the table below for the factories it operates. The plants are of similar size and capacity. All data are in thousands of US$.
Calculate the labor, capital and multifactor (including, labor, capital and materials) productivity for each plant for all years.
Using the data in the table, plot plant A’s and B’s labor productivity on the same graph.
Using the data in the table, plot plant A’s and B’s capital productivity on the same graph.
Using the data in the table, plot plant A’s and B’s multifactor productivity on the same graph.
Evaluate each factory’s performance overtime both independent of the other factory and relative to the other factory, what would you recommend?
West Bank Factory
Gaza Strip Factory
Year
Sales
Labor
Capital
Materials
Sales
Labor
Capital
Materials
2010
3480
178
870.5
1780
3510
180
878
2080
2011
3790
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967
2030
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Chapter 2 Solutions
Practical Operations Management
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5P
Ch. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 1.1QCh. 2 - Prob. 1.2QCh. 2 - Prob. 1.3QCh. 2 - Prob. 2.1QCh. 2 - Prob. 2.2QCh. 2 - Prob. 2.3QCh. 2 - Prob. 3.1QCh. 2 - Prob. 3.2QCh. 2 - Prob. 3.3QCh. 2 - Prob. 3.4Q
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