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* Home Page » * Business and Management
New Products Process
In: Business and Management
New Products Process
Chapter 2

1. A catering company prepared and served 300 meals at an anniversary celebration last week using eight workers. The week before, six workers prepared and served 240 meals at a wedding reception.

Labor productivity= 3008 = 37.5 meals per worker (anniversary)

= 2406 = 40 meals per worker (wedding)

a) For which event was the labor productivity higher? Explain.
Labor productivity was higher at the wedding event because they made 40 meals with just six workers. b) What are some possible reasons for the productivity differences?
The number of workers
2. The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures:
Week Crew Size Yards installed
1 4 96
2 3 72
3 4 92
4 2 50
5 3 69
6 2 52

week 1 week 2 week 3
964 = 24y/w 723 = 24y/w 924 = 23y/w week 4 week 5 week 6
502 = 25y/w 693 = 23y/w 522 = 26y/w
Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity?
Smaller crew sizes had the higher productivity.
3. Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. Standard price is $140 per unit.


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