MGT-455 Topic 1 Chapter 1 Problem Set Assignment

Complete Problems 1.1, 1.8, 1.11, 1.15 in the textbook.

Submit one Excel file.  Put each problem result on a separate sheet in your file.  Ensure that your last name is in your filename.

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Problem 1.1 Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hrs. per day making the 120 boxes.

a.) What is their productivity?

b.) Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per, what will be their new productivity?

c.) What will be their unit increase in productivity per hr?

Problem 1.8 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            $20,000.00             Per Day @ $1.00 Per pound
Energy $5,000.00 Per day
Capital costs $10,000.00 Per day

a.) What is the productivity per labor-hour for these tires at Lakefront manufacturing?

b.) What is the multifactor productivity for there tires at Lakefront Manufacturing?

c.) What is the precent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?

Problem 1.11 Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.

a) Calculate the company’s productivity before the change in work rules and after the change?

b) What is the percentage increase in productivity?

c) If production is increased to 700 boxes per day, what is the new productivity?

Problem 1.15 In December, General Motors produced 6600 customized vans at its plant in Detorit.The labor productivity at the plant is known to have been 0.10 vans per labor-hour during the month. There were 300 laborers employed at the plant that month.

a.) How many hours did the average laborer work that month?
b) If productivity can be increased to 0.11 vans per labor-hour, how many hours would the average laborer work that month?

Course: MGT-455 Production/Operations Management
School: Grand Canyon University

  • 09/02/2020
  • 55
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