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# The Tao of Timbuk2

Submitted By sportsman71388
Words 482
Pages 2
Ray Sears
P301 Homework #2
1/31/2012
Chapter 2 Problems 3, 4, 8, Tao of Timbuk2 case

Problem 3. Find the total productivity = total output/total input
OUTPUT
Total output = 50,000 cages X \$3.50 per unit = \$175,000

INPUT
Total wages paid = 620 production time labor hours X wages \$7.50 per hour = \$4,650
Total input = Total wages paid \$4,650 + raw materials total cost \$30,000 + component parts total cost \$15,350 = \$49,850

Total productivity = \$175,000/\$49,850 = 3.51

Problem 4. What is the labor productivity for each car
INPUT
Deluxe car input = 20,000 labor hours X \$12 per hour = \$240,000
Limited car input = 30,000 labor hours X \$14 per hour = \$420,000
Total input = deluxe car input \$240,000 + limited car input \$420,000 = \$660,000

OUTPUT
Deluxe car output = 4,000 cars sold X \$8,000 per car = \$32,000,000
Limited car output = 6,000 cars cold X \$9,500 per car = \$57,000,000
Total output = deluxe car output \$32,000,000 + limited car output \$57,000,000 = \$89,000,000

Labor productivity deluxe car = \$32,000,000/\$240,000 = 133.33
Labor productivity limited car = \$57,000,000/\$420,000 = 135.71

A problem with this labor productivity is that it does not compare the number of cars sold to the number actually produced. Also, It should compare these stats to earlier years.

Problem 8.
Sales = \$45,000 April, \$56,000 May

8 full time employees working 40hrs a week = 320 hours total a week

April had 7 part-time employees working 10 hours a week for 4 weeks in each month= 70 total hours for a week X 4 weeks = 280 part time hours in April + 320 full time hours = 600 TOTAL hours in April.

May had 9 par-time employees working 15 hours a week for 4 weeks in each month = 135 total hours for a week X 4 weeks = 540 part time hours in May + 320 full time hours = 860 TOTAL hours in May.

\$45,000/600 = 75 productivity in April
\$56,000/860 = 65.11 productivity in May

Tao of Timbuk2 case
Question 1. Some of the key dimensions that are driving sales for the messenger bag are due to the wide custom ability the customer has control over. Every feature the customer has a choice of what he or she wants. Also, two day delivery makes the customer extremely happy. Another main cause for the consistent sales is due to the fact the bags are made in the USA. The new laptop bags might be cause for concern by customers ordering in the USA because they are being crafted in China, customers can not relate as well to a company when their product is being made elsewhere. Timbuk2 preaches that quality will continue to be at its best.
Question 2.

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