Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 2, Problem 3CTE
Summary Introduction
To explain: Efficiency improvement trap.
Introduction: Competitiveness, strategy making and productivity are three crucial aspects for a firm to withstand and succeed in present competitive business environment. These elements are interrelated which must be handled efficiently in order to attain competitive edge.
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Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours
are given below.
QUANTITY
$/UNIT
$ 9,050/car
$10,550/car
Deluxe car
3,625 units sold
6,525 units sold
22,750 hours
29,865 hours
Limited car
Labor, Deluxe
Labor, Limited
$
12/hour
$
15/hour
What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dollar of labor
expense. (Round your answers to 2 decimal places.)
Labor Productivity
Units/hour
Dollars
Deluxe car
Limited car
The graph shows the productivity curves in year 1 and year 2 for an
Real GDP per hour of labor (2009 dollars)
economy.
44-
PC2
Draw a point to show real GDP per hour of labor in year 1 if capital per
hour of labor is $30. Label it 1.
Draw a point to show real GDP per hour of labor in year 2 if capital per
hour of labor is $40. Label it 2.
40-
36-
32-
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PC
The upward shift of the productivity curve is due to
increase in capital per hour of labor is due to
and the
24-
20-
O A. an increase in human capital or a technological advance; an
increase in saving or an increase in investment in physical
16-
capital
12-
B. an increase in the population; an increase in the population
8-
OC. an increase in saving; an increase in human capital
4-
O D.
an increase in investment in physical capital; a technological
0+
10
20
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advance
Capital per hour of labor (2009 dollars)
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Problem 2
You have just been given the following production data for 2010 and 2011. Calculate the total
productivity measure and the partial measures for labour, capital, energy, and raw materials for
both years.
2010
$400,000
$50,000
$100,000
$8,000
$60,000
Output:
Input:
Sales
Labour
Capital
Energy
Raw Materials
Comment about the productivity of the company.
2011
$480,000
$60,000
$110,000
$9,500
$80,000
Chapter 2 Solutions
Operations Management
Ch. 2.7 - Prob. 1.1RQCh. 2.7 - Prob. 1.2RQCh. 2.7 - Prob. 1.3RQCh. 2.7 - Prob. 2.1RQCh. 2.7 - Prob. 2.2RQCh. 2 - Prob. 1DRQCh. 2 - List the key ways that organizations compete.Ch. 2 - Prob. 3DRQCh. 2 - Prob. 4DRQCh. 2 - Prob. 5DRQ
Ch. 2 - Contrast the terms strategies and tactics.Ch. 2 - Contrast Organization and operations strategy.Ch. 2 - Prob. 8DRQCh. 2 - Prob. 9DRQCh. 2 - Prob. 10DRQCh. 2 - Prob. 11DRQCh. 2 - Prob. 12DRQCh. 2 - Prob. 13DRQCh. 2 - Prob. 14DRQCh. 2 - Prob. 15DRQCh. 2 - Who needs to be involved in formulating...Ch. 2 - Prob. 2TSCh. 2 - Prob. 3TSCh. 2 - Prob. 1CTECh. 2 - Prob. 2CTECh. 2 - Prob. 3CTECh. 2 - Prob. 4CTECh. 2 - Prob. 5CTECh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - A company offers ID theft protection wing leads...Ch. 2 - Prob. 1.1CQCh. 2 - Prob. 1.2CQCh. 2 - Prob. 1.3CQCh. 2 - Prob. 2.1CQCh. 2 - Prob. 2.2CQCh. 2 - Prob. 2.3CQCh. 2 - Prob. 2.4CQCh. 2 - Prob. 2.5CQCh. 2 - Prob. 2.6CQCh. 2 - Prob. 2.7CQCh. 2 - Prob. 1OTQCh. 2 - Prob. 2OTQCh. 2 - Prob. 3OTQCh. 2 - Prob. 4OTQCh. 2 - Prob. 5OTQCh. 2 - Prob. 6OTQCh. 2 - Prob. 7OTQ
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