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

AACSB:  Analytical thinking
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 
 
 
Full download link: https://reurl.cc/kEaMkx
 

38) Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available:
 
 
Last Year
This Year

Output
10,500 units
12,100 units

Labor Hours
12,000
13,200

Utilities
$7,600
$8,250

Capital
$83,000
$88,000

 
Has Martin Manufacturing improved its productivity during the past year?
Answer:  Productivity improved in all three categories this year; utilities showed the greatest increase, and labor the least.
 
Resource
Last Year
This Year
Change
Pct. Change

Labor
10500 / 12000 = 0.88
12100 / 13200 = 0.92
0.04
4.55%

Utilities
10500 / 83000 = 0.13
12100 / 88000 = 0.14
0.01
7.69%

Capital
10500 / 7600 = 1.38
12100 / 8250 = 1.47
0.09
6.52%

 
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
 
39) Felicien grows mirlitons (that's Cajun for Chayote squash) in his 100 by 100-foot garden. He then sells the crop at the local farmers' market. Two summers ago, he was able to produce and sell 1200 pounds of mirlitons. Last summer, he tried a new fertilizer that promised a 50% increase in yield. He harvested 1700 pounds. Did the fertilizer live up to its promise?
Answer:  Since the productivity gain was 41.67%, which is less than 50%, the fertilizer was not as good as advertised.
 
Two Summers Ago
Last Summer
Change

1200 ÷ 10,000 = .12 1bs/sq. ft
1700 ÷ 10,000 = .17 lbs/sq. ft
(.17 - .12) ÷ .12 = 41.67%

 
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
 

40) 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 moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 350 boxes per shift. Labor costs average $15 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. What is the firm's multifactor productivity before and after the changes?
Answer:  MFP before: 500 boxes / ($15 × 5 × 16 + $3000 + $400) = 500 / $4600 = 0.109 boxes/dollar
MFP after: 700 boxes / ($15 × 5 × 16 + $3200 + $400) = 700 / 4800 = 0.146 boxes/dollar
Diff: 2
Objective:  LO 1.7 Compute multifactor productivity
AACSB:  Analytical thinking
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 
41) Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work session and another at the afternoon work session. Gibson is in a competitive industry and needs to increase productivity to stay competitive. They feel that a 20 percent increase is needed.
 
Gibson's management believes that the 20 percent increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.
 
(a) Calculate labor productivity for the initial situation.
(b) Calculate labor productivity for the hypothetical 20 percent increase.
(c) What is the productivity after the change in work rules?
(d) Write a short paragraph analyzing these results.