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Practice questions for Operations management
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+ 4.5 George Kyparisis makes bowling balls in his Miami
plant. With recent increases in his costs, he has a newfound
interest in efficiency. Gcorge is interested in determining the
Ly of his organization. He would like to know if his
B average of 3%
‘ivity per year? He has the following data
representing a month from last year and an equivalent month
unis year:
Units produced
Labor (hours) 275
Resin (pounds) 45
Capital invested ($) 10,000 11,000
Energy (BTU) 3,000 2,850
Show the productivity percentage change for cach category and
then determine the improvement for labor-hours, the typical
standard for comparison. Pac
++ 4.6 | George Kyparisis (using data from Problem 1.5)
determines his costs to be as follows:
+ Labor: $10 per hour
* Resin: $5 per pound
* Capital expense: 1% per month of investment
+ Energy: $0.50 per BTU
Show the percent change in productivity for one month last year
versus one month this year, on a multifactor basis with dollars as
the common denominator. Pac
+ 4.7 Hokey Min’s Kleen Karpet cleaned 65 rugs in
October, consuming the following resources:
Labor: 520 hours at $13 per hour
Solvent: 100 gallons at $5 per gallon
Machine rental 20 days at $50 per day
a) What is the labor productivity per dollar?
b) What is the multifactor productivity? P< ** 4.8 Lillian Fok is president of Lakefront Manufacturing.
a producer of bicycle tires. Fok makes 1,000 tires per day with the
following resources:
Labor. 400 hours per day @ $12.50 per hour
Raw material: 20,000 pounds per day @ $1 per pound
Energy: $5,000 per day
Capital costs: __ $10,000 per day
#) What is the labor productivity per labor-hour for these tres au
Lakefromt Manufacturing?
b) What is the multifactor productivity for these tires at
Lakefromt Manufacturing?
©) What is the percent change in multifactor productivity if Fok
cam reduce the energy bill by $1,000 per day without cuuing
production or changing any other inputs?
*4.9 — Brown’s, a local bakery, is worried about increased
costs—particularly energy. Last year’s records can provide a
fairly good estimate of the parameters for this year. Wende
Brown, the owner, does not believe things have changed much,
but she did invest an additional $3,000 for modifications to the
bakery’s ovens to make them more energy efficient. The modifi
cations were supposed to make the ovens at least 15% more effi
cient. Brown has asked you to check the energy savings of the
new ovens and also to look over other measures of the bakery’s
productivity to see if the modifications were beneficial. You have
the following data to work with:
ss
Production (dozen) 1,500
Labor (hours) 350
Capital investment ($) 15,000
Energy (BTU) 3,000
