Question

George Kyparisis makes bowling ball in his Miami plant. With recent increases in his cost, 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 3% increase in productivity per Year? He has the following daré representing a month from last year and an equivalent month this year: last year NowUnits produced 1,000 1,000Last (hours) 300 275 Resin (pounded) 50 45Capital invested ($) 10,000 11.000 Energy (BTU) 3.000 2,850Show the productivity percentage change for each category and then determine the improvement for labor hours, the typical standard for comparison. PX

Answer 1

We compute the productivity percentage change of each category using the formula:

`\text{\% Change }=\frac{\text{ Value now - Value last year}}{\text{Value last year}}\cdot100\%.`

Productivity percentage change for each category

1) Units produced:

`(1,000-1,000)/(1,000)\cdot100\%=0\cdot100\%=0\%.`

2) Last (hours)

`(275-300)/(300)\cdot100\%=-(25)/(300)\cdot100\%=-8.33\%.`

3) Resin (pounded)

`(45-50)/(50)\cdot100\%=-(5)/(50)\cdot100\%=-10\%.`

4) Capital invested ($)

`(11,000-10,000)/(10,000)\cdot100\%=(1,000)/(10,000)\cdot100\%=10\%.`

5) Energy (BTU)

`(2,850-3,000)/(3,000)\cdot100\%=(-150)/(3,000)\cdot100\%=-5\%.`

2) Improvement for labour hours

From the previous computations, we see that the percentage change of the category "Last (hours)" has a negative value of -8.33%, which means that this value decreased by 8.33% with respect to the last year.

Answer

1) Productivity percentage change for each category

0. Units produced: ,0%

,

1. Last (hours): , -8.33%

,

2. Resin (pounded):, -10%

,

3. Capital invested ($): ,10%

,

4. Energy (BTU): ,-5%

2) Improvement for labour hours

The percentage change of the category "Last (hours)" has a negative value of -8.33%, which means that this value decreased by 8.33% with respect to the last year.