# Productivity

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Submitted By fallatah
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MGT214 Class Exercise #1
Name:______________Solution________________________ ID#____________ Date# 02/04/2013
Problem #1
Mance Fraily, the Production Manager at Ralts Mills, can currently expect his operation to produce 1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 labor hours to process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square yards per ton of raw cotton with the same labor hours.
What will be the impact on productivity (measured in square yards per labor-hour) if he purchases the higher quality raw cotton?
Productivity improves 20% = ( 240 - 200 ) / 200 = .2
Productivity improves 20% = ( 240 - 200 ) / 200 = .2
Solution

Problem #2
Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 360 dolls per day. Total material cost for each doll is approximately \$3.50; she has to invest \$20 in the necessary supplies (expendables) per day; energy costs are assumed to be only \$4.00 per day; and she thinks she should be making \$10 per hour for her time. Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint?
Solution
Currently | Using the new paint | Labor | 12 hrs * \$10 | = \$120 | 12 hrs * \$10 | = \$ 120 | Material | 240 * \$3.50 | = \$840 | 360 * \$3.50 | = \$1260 | Supplies | | = \$ 20 | | = \$ 20 | Energy | | = \$ 4 | | = \$ 4 | Total Inputs | | = \$984 | | = \$1404 | Productivity | 240/984 | = 0.24 | 360/1404 | = .26 |

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