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Assignment - 2 - Productivity Solution

This document contains 5 questions regarding productivity calculations for various manufacturing and production scenarios. It provides the questions, solutions, and calculations for labor productivity, multifactor productivity, and productivity per employee or machine. Key details calculated include the number of units or items produced per labor hour or total input costs. The solutions demonstrate how to determine productivity metrics from given operational input and output information.

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73 views3 pages

Assignment - 2 - Productivity Solution

This document contains 5 questions regarding productivity calculations for various manufacturing and production scenarios. It provides the questions, solutions, and calculations for labor productivity, multifactor productivity, and productivity per employee or machine. Key details calculated include the number of units or items produced per labor hour or total input costs. The solutions demonstrate how to determine productivity metrics from given operational input and output information.

Uploaded by

sohilamohsen46
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Misr International University – MIU

Faculty of Engineering

GEN 121: Management and Marketing


Fall Term, 2022
Assignment – 2 - Productivity

Q#1
A company that processes fruits and vegetables is able to produce 400 cases of
canned peaches in one half hour with four workers. What is the labor productivity?
Solution:
Labor productivity = Quality Produced / Labors Hours
=400 cases/ (4 workers x 1/2 hours / workers)
=200 cases per labor hour
Q#2
A wrapping paper company produced 2,000 rolls of paper one day. Standard price is
$ 1/roll. Labor cost was $ 160, material cost was $ 50, and overhead was $ 320.
Determine the multifactor productivity.
Solution:
Multifactor productivity =
Quality produced at standard price/(Labor cost + Material cost + Overhead)
= 2,000 rolls x $ 1/ ($160+ $ 50 + $320)
= 3.77 rolls output per dollars
Q#3
a) Find the productivity if four workers installed 720 square yards of carpeting in
eight hours.
b) Compute for the productivity of a machine which produced 68 usable pieces in
two hours.

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Solution:
a) Productivity = yards of carpeting install / Labors Hours worked
= 720 square yard / (4 workers x8 hours / worker)
= 720 yards / 32 Hours
= 22.5 yards/ hours
b) Productivity = Usable Pieces / Production Time
= 68 usable pieces / 2 hrs
= 34 pieces/ hours
Q#4
Determine the multifactor productivity for the combined input of the labor and the
machine time using the following:
Input:
Labor: $ 1,000
Materials: $ 520
Overheads: $ 2,000
Keep in mind the Production is 1760 unit
Solution:
Multifactor Productivity= Output / (Labor + Materials + Overheads)
=1,760 Units / ($1,000 + $520 + $2,000)
=0.50 units
Q#5
Calculate the productivity for the following operations:
a) Three employees processed 600 insurance policies last week. They 8
hours per day, 5 days per week.
b) A team of workers made 400 units of product, which is valued by its
standard cost of $10 each (before markups for other expenses and profit). That

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accounting department reported that for this job the actual cost were $ 400 per
labor, $1000 for materials and $300 for overhead:
Solution:
a) Labor productivity =
Policies processed/ Employee. hours
=600 policies /3 (40)
=5 policies per hours
b) Multifactor productivity = Quality at standard cost /Labor + Materials + Overheads
= 400units ($10/units) /$400 +$1000 + $300
= $4000 /$1700 =2.35

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