Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
At Symtecks, the output of a specific process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks:
Week 1 | Week 2 | Week 3 | Week 4 | |
Units Produced | 1,124 | 1,310 | 1,092 | 981 |
Labor ($) | 12,735 | 14,842 | 10,603 | 9,526 |
Material ($) | 21,041 | 24,523 | 20,442 | 18,364 |
Overhead ($) | 8,992 | 10,480 | 8,736 | 7,848 |
a. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.
b. Has labor productivity changed? Use the labor productivity ratio to support your answer.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- company has introduced a process improvement that reduces processing time for each unit;output is increased by 40 percent with less material, but two additional workers are required.Under the old process, five workers could produce 1800 units per hour. Labor costs are $20/hour, and material input was previously $15/unit. For the new process, material is now $12/unit. *Overhead is charged at (1.4XLABOR COST + 500). *Finished units sell for $80 each. QUESTION: What increase in productivity is associated with the process improvement?arrow_forwardMop and Broom Manufacturing estimates that it takes 412hours for each broom to be produced, from raw materials to fi nalproduct. An evaluation of the process reveals that the amount oftime spent working on the product is 3 hours. Determine processvelocity.arrow_forwardIf the time standard is 0.7293 minutes per unit per machine. productivity is expected to be 85%, and the takt time is 0.116 minutes per unit. What is the number of machines that will be needed if the job is to be done in 8 hours on one shift with no overtime? (NOTE: you must have an integer number of machines.) Do NOT inlcude units such as "machines."arrow_forward
- A packaging factory runs a five-station serial production line (A-B-C-D-E). The following table shows the process times in minutes (or minutes/unit, i.e., the time to process one unit) of the five stations. Station A B C D E What is the process time of the system? 7 10 42 12 Process Time (minutes/unit) 9 10 7 12 4arrow_forwardWhat high-level position manager is responsible for working with the CEO and company president to determine the company’s competitive strategy in the operations.arrow_forwardExplain how can the resource be deployed to achieve customer requirement?arrow_forward
- Please answer all with each process, Thank you!arrow_forwardIdentify an unethical behavior for each of the five major topics in the work design and measurement and indicate which ethical principle in introduction to operations management each violates.arrow_forwardDev A restaurant earns $3,950 in sales from 64 guests for Monday’s dinner. Four (4) back-of-the-house employees work the full three-hour dinner shift that night. What is the back-of-the-house team’s sales per person-hour rate? What is the back-of-the-house team’s covers per person-hour rate?arrow_forward
- According to your text, the most common process metricis:A. Throughput timeB. UtilizationC. EfficiencyD. Productivitarrow_forwardA manager facen peak (weekly) demand for one of her operations, but is not sure how long the peak will last She can either use overtime from the current workforce, or hirelayoff one temporary worker and just pay regular-time wages Regular-time pay is $500 per week overtime is 5800 per week, the hiring cost is $3,000, and the layoff cost is $2,000 Use breakeven analysis to solve this problem What is the fixed cost for the regular time option?S Enter your reaponae as an integer)arrow_forwardMariah Enterprses makes a variety of consumer electronic products Its camera manutacturing plant is considering choosing betwoen two different processes, named Alpha and Beta, which can be used to make a component part To make the correct docision, the mariagers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta The value of process output for Alpha and Beta is $140 per unit of product A and $160 por unit of product B, and the corresponding overhead costs tor Alpha and Beta are $3,000 and S8,000, respoctively Process Alpha Process Beta Product Output (units) Labor (S) Materials (5) B. A 80 40 70 60 $2,000 $2,500 $1,200 $1,400 $1,000 $1,400 $3,500 $1,500 a. Which process, Alpha or Beta, is more productive? Process Beta hass higher labor productivity Process has % highor multifactor productivity (Enter your responses rounded to the nearest whole number)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.