Zychol Productivity Assignment 1 701
Zychol Case Study – 10% of Final Mark – Due January 21 2015
Bob Richards, the production manager of Zychol Chemicals, in Houston Texas, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production data prepared by Sharon Walford, his operations analyst. The report, which she gave his this morning, showed the following:
2012
2013
Production (units)
4,500
6,000
Raw material used (barrels of petroleum by-products)
700
900
Labour hours
22,000
28,000
Capital cost applied to the departments ($)
$375,000
$620,000
Bob knew that his labour cost per hour had increased from an average of $13 per hour to an average of $14 per hour, primarily due to a move by management to become more competitive with a new company that had just opened a plant in the area. He also knew that his average cost per barrel of raw material had increased from $320 to $360. He was concerned about the accounting procedures that increase his capital cost from $375,000 to $620,000, but earlier discussions with his boss suggested that there was nothing that could be done about the allocation.
Bob wondered if his productivity had increased at all. He called Sharon into the office and conveyed the above information to her and asked her to prepare this part of the report.
Discussion Questions
1. Prepare the productivity part of this report for Mr. Richards. He probably expects analysis of productivity inputs for all factors, as well as a multifactor analysis for both years with the change in productivity (up or down) and the amount noted. (Show the change in productivity between the two years)
2. Management’s expectation for departments such as Mr. Richard’s is an annual productivity increase of 5%. Did he reach his goal?
Note
1. Assignment should be typed, printed and include a Cover Page
2. Assignment should have an introduction (with a purpose and scope), body showing your calculations and conclusion summarizing your
Bob Richards, the production manager of Zychol Chemicals, in Houston Texas, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production data prepared by Sharon Walford, his operations analyst. The report, which she gave his this morning, showed the following:
2012
2013
Production (units)
4,500
6,000
Raw material used (barrels of petroleum by-products)
700
900
Labour hours
22,000
28,000
Capital cost applied to the departments ($)
$375,000
$620,000
Bob knew that his labour cost per hour had increased from an average of $13 per hour to an average of $14 per hour, primarily due to a move by management to become more competitive with a new company that had just opened a plant in the area. He also knew that his average cost per barrel of raw material had increased from $320 to $360. He was concerned about the accounting procedures that increase his capital cost from $375,000 to $620,000, but earlier discussions with his boss suggested that there was nothing that could be done about the allocation.
Bob wondered if his productivity had increased at all. He called Sharon into the office and conveyed the above information to her and asked her to prepare this part of the report.
Discussion Questions
1. Prepare the productivity part of this report for Mr. Richards. He probably expects analysis of productivity inputs for all factors, as well as a multifactor analysis for both years with the change in productivity (up or down) and the amount noted. (Show the change in productivity between the two years)
2. Management’s expectation for departments such as Mr. Richard’s is an annual productivity increase of 5%. Did he reach his goal?
Note
1. Assignment should be typed, printed and include a Cover Page
2. Assignment should have an introduction (with a purpose and scope), body showing your calculations and conclusion summarizing your