Operations Management: Sustainability and Supply Chain Management 12th Edition by Jay Heizer Test ba
Answer:
| Resource | (a) Standard Equipment | (b) Larger Machine | (c) Percent Change |
| Solvent |  = 7 |
 = 5 |
 = -28.57% |
| Labor |  = 0.22 |
 = .33 |
 = 50% |
Key Term: Productivity
AACSB: Analytical thinking
Objective: LO 1.4 Compute single-factor productivity
35) 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 300 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: 600 boxes per day / 16 hours = 37.5 boxes per hour
Diff: 2
Key Term: Productivity
AACSB: Analytical thinking
Objective: LO 1.4 Compute single-factor productivity
36) Mark's Ceramics spent $4000 on a new kiln last year in the belief that it would cut annual energy usage 25% over the old kiln. This kiln is an oven that turns "greenware" into finished pottery. Mark is concerned that the new kiln requires extra labor hours for its operation. Mark wants to check the energy savings of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial. Mark has the following data to work with:
| Last Year | This Year | |
| Production (finished units) | 4000 | 4000 |
| Greenware (pounds) | 5000 | 5000 |
| Labor (hrs) | 350 | 375 |
| Capital ($) | 15000 | 19000 |
| Energy (kWh) | 3000 | 2600 |
Were the modifications beneficial?
Answer: The energy modifications did not generate the expected energy savings; also, labor and capital productivity decreased.
| Resource | Last Year | This Year | Change | Pct. Change |
| Labor | 4000 / 350 = 11.43 | 4000 / 375 = 10.67 | -0.76 | -6.65% |
| Capital | 4000 / 15000 = 0.27 | 4000 / 19000 = .21 | -0.060 | -22.22% |
| Energy | 4000 / 3000 = 1.33 | 4000 / 2600 = 1.54 | 0.21 | 15.79% |