ed with POM for Windows andor Excel OM 15 George Kyparisis m

ed with POM for Windows and/or Excel OM. 1.5 George Kyparisis makes bowling balls in his Miami ship plant. With recent increases in his costs, he has a newfound 1 of 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 3% ro- increase in productivity per year? He has the following data 125 representing a month from last year and an equivalent month this year LAST YEAR Now 1,000 275 45 11,000 2,850 on Units produced Labor (hours) Resin (pounds) Capital invested () Energy (BTU) 1,000 300 50 10,000 3,000 ro- out our Show the productivity percentage change for each category and then determine the improvement for labor-hours, the typical bal stadard for comparison. Px ork t is 1.6 George Kyparisis (using data from Problem 1.35) are determines his costs to be as follows: Labor: S10 per hour for Resin: $5 per pound Capital expense: 1% per month of investment urs Energy: $0.50 per BTU ase 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. Px will ori

Solution

1.5 1 2 3=1-2 (3/1)*100 Last year Now Change   Change in % Units produced 1000 1000 0 0.00% Labor (hours) 300 275 -25 -8.33% Resin (pounds) 50 45 -5 -10.00% Capital invested ($) 10000 11000 1000 10.00% Energy (BTU) 3000 2850 -150 -5.00% Labor productivity (Units produced/Labor) 3.333333 3.636364 0.30303 9.09% Desired increase in productivity=3% Achieved increase in productivity=9.09% Organization is able to maintain the manufacturing average of 3% increase in productivity per year. 1.6 Last year Labor cost (300*10) 3000 Resin (50*5) 250 Capital invested (10000*1%) 100 Energy (3000*0.50) 1500 Total cost 4850 Multifactor productivity=Units produced/Total cost=1000/4850=0.2062 Now Labor cost (275*10) 2750 Resin (45*5) 225 Capital invested (11000*1%) 110 Energy (2850*0.50) 1425 Total cost 4510 Multifactor productivity=Units produced/Total cost=1000/4510=0.2217 Change in productivity=0.2217-0.2062=0.0155 Change in productivity in %=(0.0155/0.2062)*100=7.52%