George Kyparisis makes bearing balls in his Miami plant With

George Kyparisis makes bearing balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: 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 = D (enter your response as a percentage rounded to two decimal places) .

Solution

Multifactor Productivity   =   Output/Input

Multifactor Productivity last year month = 1000/5530*100 = 18.08%

Multifactor Productivity This year month = 1000/5150*100 = 19.42%

& percentage change in Multifactor Productivity   = (This year- Last Year)/Last Year * 100                      

                                                                        = (19.42 - 18.08)/ 18.08 * 100

                                                                        =    7.4%

                                 

Last Year month
Unit produced	1000
Labor	300	12	3600
Resin	50	5	250
Capital Invested	9000	0.02	180
Energy	3000	0.5	1500
	Total Cost	5530