, eccounting, and purchasing 2) A firm cleans chemical tank cars in the Bay St.
ID: 3145701 • Letter: #
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, eccounting, and purchasing 2) 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 10 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 12 gallons of solvent, and the two employees worked 6 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? 3) 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 300 boxes per shift. Labor costs average $10 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? 4) A company is choosing an outside firm to provide its payroll services.It has chosen four compar categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 30% 10% 20%, and 40% respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? Provider A Provider B Provider C 10 Client reviews Financial condition IT capabilities Government stability 5) The difference between AON and AOA networks is that: A) AOA networks sometimes require dummy activities B) nodes consume no resources or time in AOA networks. C) both are acceptable in practice; however, Microsoft Project uses AON. D) nodes designate activities in AON, while arrows designate activities in AOA. E) All of the above are true.Explanation / Answer
(a) Raw matrial is solvent
per cleaning solvent used = 10 gallons/70 = 1/7 gallon per cleaning
Labor productivity = per hour tanks cleaned = total tanks cleaned / hours invested = 70 / (2*20*8) = 7/32
(b) Raw matrial is solvent
per cleaning solvent used = 12 gallons/60 = 1/5 gallon per cleaning > 1/7 gallon per cleaning
(the solvent required per clean has increased)
Labor productivity = per hour tanks cleaned = total tanks cleaned / hours invested = 60 / (2*15*6) = 1/3
(c) productivity has changed from 7/16 to 2/3
1/3 - 7/32 = 11/32
per hour of labors 11/32 more tanks gets cleaner with large machine compared to standard.
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