Principles of Operations Management: Sustainability and Supply Chain Management 10th Global Edition

(b)   (4 lanes)(8 hours)(60 minutes/hour)(1 checkout/2 min) = 960 checkouts
(c)   Cost for the old system = (4 workers)(8 hours)($10/hour) + ($0.10)(1280) + ($0.05)(1280) = $512. Cost for the new system = (1 worker)(8 hours)($10/hour) + ($0.15)(960) + ($0.05)(960) + $100 = $372. Multifactor productivity for old system = 1280 checkouts / $512 = 2.5 checkouts/$. Multifactor productivity for new system = 960 checkouts / $372 = 2.6 checkouts/$.
Diff: 3
Key Term:  Multifactor productivity
AACSB:  Analytical thinking
LO:  1.5 Compute multifactor productivity
 

113) A swimming pool company has 100,000 labor hours available per summer and with a labor productivity of 5 pools per 6,000 hours.
a.   How many pools can the company install this summer?
b.   Suppose the multifactor productivity was one pool per $25,000. How much should the company expect to spend this summer constructing the pools?
Answer: 
(a)   100,000 hours ∗ 5 pools/6000 hours = 83.33 or 83 pools
(b)   83 pools × $25,000/pool = $2,075,000
Diff: 2
Key Term:  Productivity
AACSB:  Analytical thinking
LO:  1.4 Compute single-factor productivity
 
114) An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts.
(a)   If a worker can produce 10 parts/hour, how many workers are needed on each shift?
(b)   If each shift has 100 workers, what is the productivity of an individual worker?
(c)   If material costs are $10/part, capital costs are $100,000 and labor costs are $10/hour, what is the multifactor productivity of the plant from part (a)?
Answer: 
(a)   100,000 parts × (1 hour / 10 parts) × (1 shift / 8 hours) × (1 worker/60 shifts) = 20.83 = 21 workers
(b)   100,000 parts / [(60 shifts/worker) × (100 workers) × (8 hours/shift)] = 2.08 parts/hour
(c)   100,000 parts / [($10/part) × (100,000 parts) + $100,000 + (21 workers) × (60 shifts/worker) × (8 hours/shift) × ($10/hour)] = .083 parts/$1
Diff: 2
Key Term:  Productivity
AACSB:  Analytical thinking
LO:  1.5 Compute multifactor productivity
115) The local fast food store experienced the following number of customers on the night shift:
Hour------------Customers
12 AM                   23
1 AM                     20
2 AM                     15
3 AM                       5
4 AM                       2
5 AM                       1
If the store was staffed by two workers, what was the average productivity per worker, in customers/hour?
Answer:  (23 + 20 + 15 + 5 + 2 + 1) customers/ (2 workers ∗ 6 hours/worker) = 5.5 customers/hour
Diff: 2
Key Term:  Productivity
AACSB:  Analytical thinking
LO:  1.4 Compute single-factor productivity
 
116) Current challenges in operations management include all of the following EXCEPT:
A) just-in-time performance.
B) rapid product development.
C) mass customization.
D) empowered employees.
E) None of the above are exceptions, i.e., all are current challenges.
Answer:  E
Diff: 2
Key Term:  Operations management
LO:  1.1 Define operations management
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 
117) Which of the following statements about challenges in operations management is FALSE?
A) Job specialization is giving way to empowered employees.
B) Local or national focus is giving way to global focus.
C) Sustainable production is giving way to a low-cost focus.
D) Rapid product development is partly the result of shorter product cycles.
E) The goal of mass customization is to produce customized products, whenever and wherever needed.
Answer:  C
Diff: 2
Key Term:  Operations management
LO:  1.1 Define operations management
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization