Question

Carbondale Casting produces cast bronze valves on a 12​-person assembly line. On a recent​ day, 180 valves were produced during a 6​-hour shift.

​a) What is the labor productivity of the line​?
​b) John​ Goodale, the manager at​ Carbondale, changed the layout and was able to increase production to 200 units per 6​-hour shift. What is the new labor productivity?
​c) What is the percentage of productivity increase?

Answer 1

Labor productivity at Carbondale Casting was originally 2.5 valves per worker per hour, which increased to 2.777 after layout changes. The productivity increase was 11.08%.

Step-by-step explanation:

Labor Productivity Calculation and Analysis

Labor productivity is a measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs. To calculate it, you divide the total output by the number of workers. In the case of Carbondale Casting:

1. Initial labor productivity = 180 valves / (12 workers * 6 hours) = 2.5 valves per worker per hour.
2. After the change, new labor productivity = 200 valves / (12 workers * 6 hours) = 2.777 valves per worker per hour.
3. The percentage increase in productivity = ((new productivity - initial productivity) / initial productivity) * 100 = ((2.777 - 2.5) / 2.5) * 100 = 11.08%.

Managerial decisions, such as restructuring the layout, may result in economies of scale or more efficient use of labor and capital, thus impacting labor productivity. Improvements in productivity can come from technology, or organization changes such as the adjustments made by John Goodale at Carbondale.