A local market research firm has just won a contract for several thousand small
ID: 460704 • Letter: A
Question
A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 10 such projects in an eight-hour day.
The firm’s management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but the analysis must be complete before the statistical analysis program can accept the new data. After some practice, the new process can be completed with a standard time of 25 minutes for the data gathering and 30 minutes for the analysis.
1. What is the production (output per hour) for each alternative?
1. a. What is the productivity (output per labor hour) for each alternative?
2. How long would it take to complete 1,000 projects with each alternative?
2. a. What would be the labor content (total number of labor hours) for 1,000 projects for each alternative?
A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 10 such projects in an eight-hour day.
The firm’s management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but the analysis must be complete before the statistical analysis program can accept the new data. After some practice, the new process can be completed with a standard time of 25 minutes for the data gathering and 30 minutes for the analysis.
1. What is the production (output per hour) for each alternative?
1. a. What is the productivity (output per labor hour) for each alternative?
2. How long would it take to complete 1,000 projects with each alternative?
2. a. What would be the labor content (total number of labor hours) for 1,000 projects for each alternative?
Explanation / Answer
1.
1.b)
Alternative 1: For 1 experienced person per project: 8 hours 10 projects hence, 1 hour 1.25 projects (10/8) Output per hour 1.25 projects Alternative 2: 2 staff on one project: data gathering 25 mins 0.42 hours data analysis 30 mins 0.5 hours No. of projects / day: data gathering 19.2 projects data analysis 16 projects since the data analysis is the bottleneck, hence the output from data analysis is the line's output in 8 hours 16 projects hence, in 1 hour 2 projects Output per hour 2 projectsRelated Questions
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