Be sure to explain carefully how you are working the problem. I don\'t care if y

Question

Be sure to explain carefully how you are working the problem. I don't care if you do the arithmetic right, I know you could do that eventually, but I need to see how you are thinking about the problem. If you need to draw a figure or graph, you can make a sketch on paper and take a photo or scan it, and insert the image into your Word document. You can also write out solutions on paper and scan them and insert them into your word document. Just make sure they are legible before submitting. Practice Problems: Chapter 1, Operations and Productivity

Problem 1:

Mance Fraily, the Production Manager at Ralts Mills, can currently expect his operation to produce 1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 labor hours to process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square yards per ton of raw cotton with the same labor hours. What will be the impact on productivity (measured in square yards per labor-hour) if he purchases the higher quality raw cotton?

Problem 2: A. Ratchet, the local auto mechanic, finds that it usually takes him 2 hours to diagnose and fix a typical problem. What is his daily productivity (assume an 8 hour day)? Mr. Ratchet believes he can purchase a small computer trouble-shooting device, which will allow him to find and fix a problem in the incredible (at least to his customers!) time of 1 hour. He will, however, have to spend an extra hour each morning adjusting the computerized diagnostic device. What will be the impact on his productivity if he purchases the device?

Problem 3: Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 360 dolls per day. Total material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time. Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint?

Problem 4: How would total (multifactor) productivity change if using the new paint raised Ms. French’s material costs by $0.50 per doll? Problem 5: If she uses the new paint, by what amount could Ms. French’s material costs increase without reducing total (multifactor) productivity?

Explanation / Answer

Problem 1:

The current production is 1000 square yards of fabric in 5 labor hours. Therefore, the productivity of one labor hour = 1000/5 = 200 square yards.

After using better quality raw cotton, the production will be 1200 square yards of fabric in 5 labor hours. So, the productivity of one labor hour will be = 1200/5 = 240 square yards.

Improvement in productivity in % = (240 - 200)/200 * 100 = 1/5 * 100 = 20%

to process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square yards per ton of raw cotton with the same labor hours. What will be the impact on productivity (measured in square yards per labor-hour) if he purchases the higher quality raw cotton?

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