Operation Management

Section 1 (Strategy)-Page 37,38,39

QUSETION 1

Average monthly productivity (units/hour) for the month of:

|MONTHS |PRODUCTIVITY |
|January |2300 / (325*3) = 2.36 |
|February |1800/ (200*5) = 1.80 |
|March |2800/ (400*4) = 1.75 |
|April |3000/ (320*4) = 2.34 |

Average Monthly Productivity= (2.36+1.80+1.75+2.34)/4 = 2.06

QUESTION 2

Productivity = sales revenue/labor expenses

= (1700*1217)/ (46672*12) = 3.6940

QUESTION 3

Total Productivity = total output/ total input

= (50000*3.50)/ ((620*7.50) +30000+15350)

= 3.5

QUESTION 4

Labor productivity for:

Deluxe car (units/hours) = (4000)/ (20000) = 0.20

Limited Car (units/hours) = (6000)/ (30000) = 0.20

Deluxe car (Dollars) = (4000*8000)/ (20000*12) = 800/6 = 133.33

Limited Car (Dollars) = (6000*9500)/ (30000*14) = 135.71

Problems associated with labor productivity:

As we can see the productivity from deluxe as well limited is same when in terms of units per hours however the Productivity of limited car is more when units sold and labor cost is taken

under consideration which shows that for limited car more production is done through skilled labor.

Question 6

Productivity for company

|Productivity |2007 |2008 |
|Total productivity |200000/122000 = 1.639 |220,000/144,000 = 1.528 |
|Labor Productivity |200000/30000 = 6.67 |220,000/40,000 = 5.5 |
|Capital Productivity |200000/50000 = 4 |220,000/50,000= 4.4 |
|Raw