Question

A local industrial plant produces plastic containers for use in the food packaging industry. Last year, its average monthly production was 20,000 containers produced using one shift five days a week with an eight-hour-a-day operation. Of the items produced, 28% were deemed defective. The 28% defective containers are scrapped due to quality problems that are identified after they have completed the production process. Recently, the plant has implemented new production methods and a new quality improvement program. Its monthly production has increased to 25,000 containers with 10% defective. Calculate the percentage change in productivity (%).

Answer 1

The percentage change in productivity after the plant's improvements is 56.25%, calculated by comparing the number of non-defective containers produced before and after the process changes.

Step-by-step explanation:

The question involves a calculation of the percentage change in productivity after a local industrial plant has changed its production methods, resulting in an increase in total production and a decrease in the number of defective products.

Previously, the plant produced 20,000 containers monthly with a 28% defect rate, which equals to 14,400 containers that were not defective (72% of 20,000). After improving production methods, the plant produces 25,000 containers with a 10% defect rate, resulting in 22,500 containers that are not defective (90% of 25,000).

To calculate the productivity change, we use the formula: Percentage Change in Productivity = [(New Productivity - Old Productivity) / Old Productivity] x 100%. Plugging in the numbers: [(22,500 - 14,400) / 14,400] x 100% = 56.25%. Therefore, the increase in productivity is 56.25%.