A local manufacturer builds lawn mowers for sale nationally

A local manufacturer builds lawn mowers for sale nationally. This year the company has put a new production process in place. Production has increased from 60 lawnmowers per day last year to 90 lawnmowers per day this year. The number of defective lawnmowers produced has dropped from 10 per day last year to 1 per day this year.

a) What was number of quality lawn mowers per day?

b) What was the number of quality lawn mowers per year?

c) What was the rate of productivity improvement?

Solution

a.

Lawn mowers produced per day = 90

Defective lawn mowers produced per day = 1

Thus,

Quality lawn mowers produced per day = 90-1 = 89 units

b.

Quality lawn mowers produced per year = quality lawn mowers produced per day* no. of days in a year

Quality lawn mowers produced per year = 89*365

Quality lawn mowers produced per year = 32485 units

c.

No. of lawn mower produced last year = 60*365 = 21900 unit

No. of lawn mower produced this year = 90*365 = 32850

Thus,

Rate of productivity improvement = (32850 – 21900)/21900 = 50%