A U.S company has two manufacturing plants, one in the United State and one in another country. Both produce the same item, eachfor sale in their respective countries. However, their productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing, while the other plants uses a higher percentage of labor. Expalin how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

A U.S company has two manufacturing plants, one in the United State and one in another country. Both produce the same item, eachfor sale in their respective countries. However, their productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing, while the other plants uses a higher percentage of labor. Expalin how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful? 

 

Week Crew Size Yards Installed
1
2
ن برا
3
4
5
16
4
3
4
نیا
2
ن نیا
3
2
Crew Size
96
72
92
50
69
52
2
3 4
Labor Productivity per
Worker
Crew Size Productivity
Most Productive Crew Size
Transcribed Image Text:Week Crew Size Yards Installed 1 2 ن برا 3 4 5 16 4 3 4 نیا 2 ن نیا 3 2 Crew Size 96 72 92 50 69 52 2 3 4 Labor Productivity per Worker Crew Size Productivity Most Productive Crew Size
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.