Operations Management: Sustainability and Supply Chain Management 13th edition by Jay Heizer Test ba

 
33) List three key variables for improved labor productivity.
Answer:  Basic education appropriate for an effective labor force; diet of the labor force; social overhead that makes labor available, such as transportation and sanitation.
Diff: 2
Objective:  LO 1.8 Identify the critical variables in enhancing productivity
AACSB:  Diverse and multicultural work environments
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 
34) Susan has a part-time business producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. She currently works 8 hours per day to produce 24 ornaments.
(a) What is her productivity?
(b) She thinks that by redesigning the ornaments and switching from use of a wood glue to a hot-glue gun she can increase her total production to 30 ornaments per day. What is her new productivity?
(c) What is her percentage increase in productivity?
Answer:  (a) 24 ornaments/8 hours = 3 ornaments/hour
(b) 30 ornaments/8 hours = 3.75 ornaments/hour
(c) Change in productivity = 0.75 ornaments/hour; percent change = 0.75/3 = 25%
Diff: 2
Objective:  LO 1.6 Compute single-factor productivity
AACSB:  Analytical thinking
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 

35) A firm cleans chemical tank cars in the Bay St. Louis area. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 12 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 15 gallons of solvent, and the two employees worked 8 hours a day.
(a) What was their raw material and their labor productivity with the standard equipment?
(b) What is their raw material and their labor productivity with the larger machine?
(c) What is the change in each productivity measure?
Answer: 
Resource
(a) Standard Equipment
(b) Larger Machine
(c) Percent Change

Solvent
70/12 = 5.83
60/15 = 4
(4 — 5.83)/5.83 = −31.39%

Labor
70/320 = 0.22
60/240 = 0.25
(0.25 — 0.22)/0.22 = 13.64%

 
Diff: 2
Objective:  LO 1.6 Compute single-factor productivity
AACSB:  Analytical thinking
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 
36) The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8-hour shifts (250 boxes per shift). The company has introduced some small changes in equipment, and conducted appropriate job training, so that production levels have risen to 400 boxes per shift. These changes did not require any change in the amount of capital spending or energy use. What is the firm's new labor productivity?
Answer:  800 boxes per day / 16 hours = 50 boxes per hour
Diff: 2
Objective:  LO 1.6 Compute single-factor productivity
AACSB:  Analytical thinking
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 

37) Mark's Ceramics spent $4000 on a new kiln last year in the belief that it would cut annual energy usage 25% over the old kiln. This kiln is an oven that turns "greenware" into finished pottery. Mark is concerned that the new kiln requires extra labor hours for its operation. Mark wants to check the energy savings of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial. Mark has the following data to work with:
 
 
Last Year
This Year

Production (finished units)
4000
4000

Greenware (pounds)
5000
5000

Labor (hrs)
350
390

Capital ($)
15000
20000

Energy (kWh)
4000
2800

 
Were the modifications beneficial?
Answer:  The energy modifications generated more than the expected energy savings; however, labor and capital productivity decreased.
 
Resource
Last Year
This Year
Change
Pct. Change

Labor
4000 / 350 = 11.43
4000 / 390 = 10.26
−1.17
−10.24%

Capital
4000 / 15000 = 0.27
4000 / 20000 = .20
−0.07
−25.93%

Energy
4000 / 4000 = 1.00
4000 / 2800 = 1.43
0.43
43%

 
Diff: 2
Objective:  LO 1.6 Compute single-factor productivity