Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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Problem 5: Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs,
he has newfound interest in efficiency. Eric is interested in determining the productivity of his organisation.
He would like to know if his organisation is maintaining the manufacturing average of 3% increase in
productivity. He has the following data representing a month from last year and an equivalent month this
year.
Last Year New
1000
Units produced
Labor (hours)
Resin (pounds)
Capital invested (S)
Energy (BTU)
1000
300
50
10,000 11,000
3,000
275
45
2,850
a. Show the productivity percentage change for each category and then determine the improvement for
labor-hours, the typical standard for comparison.
b. Eric Johnson determines his costs to be as follows: Labor @ S10 per hour, Resin S5 per pound,
Capital expense 1% per month of investment and Energy $0.50 per BTU. With this information,
Show the percent change in productivity for one month last year versus one month this year, on a
multifactor basis with dollars as the common denominator.
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Transcribed Image Text:Problem 5: Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has newfound interest in efficiency. Eric is interested in determining the productivity of his organisation. He would like to know if his organisation is maintaining the manufacturing average of 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year. Last Year New 1000 Units produced Labor (hours) Resin (pounds) Capital invested (S) Energy (BTU) 1000 300 50 10,000 11,000 3,000 275 45 2,850 a. Show the productivity percentage change for each category and then determine the improvement for labor-hours, the typical standard for comparison. b. Eric Johnson determines his costs to be as follows: Labor @ S10 per hour, Resin S5 per pound, Capital expense 1% per month of investment and Energy $0.50 per BTU. With this information, Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator.
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