1.5 At Lori Cook’s current rate of production of “Final Exam Care Packages” for her resale by her sorority she is producing 100 packages over a 5 hour period. Her productivity for this period is 20 packages/hour. If she redesigns her package to increase her production to 133 packages over the same time frame, her productivity will be 26.6 packages/hour. This displays a 33% increase in Lori’s productivity. The original productivity was calculated by dividing 5 into 100 to get 20 packages/hour. After she redesigned her package productivity would be calculated by dividing 5 into 133 resulting in 26.6 packages/hour. Calculating the difference between the new packages per hour and the old packages per hour, and then dividing that number by the old packages per hour gave us the percentage increase. Graph 1.5 demonstrates this increase over time.
1.6 George Kyparisis is focusing on efficiency for his Bowling Bowl Plant in Miami. He’s concerned on if his plant is maintaining its manufacturing average of 3% increase in productivity each year. Last year, Mr. Kyparisis produced 1000 units, and continued to produce 1000 units this year. The productivity percentage changes for the plants labor hours is -8.3%, Resin (pounds) is -10%, Capital Investments is 10%, and Energy (BTU) is -5%. One can see in graph 1.6, his organization did not maintain its manufacturing average of a