Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Question
Chapter 2, Problem 3DQ
Summary Introduction
Interpretation:The problems faced for calculating productivity of service operations vis-à-vis that of production operations.
Concept Introduction:The simplest way to express productivity is output/input, normally converted as %. It is a useful and commonly used operational metric. There is no problem in this calculation when both, the numerator and the denominator can be expressed in same units e.g. dollars, hours, numbers etc.
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Students have asked these similar questions
How can you measure productivity in a service-based business firm/enterprise?
Why is measuring productivity in the service sector more difficult than the manufacturing sector ?
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
Chapter 2 Solutions
Practical Operations Management
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5P
Ch. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 1.1QCh. 2 - Prob. 1.2QCh. 2 - Prob. 1.3QCh. 2 - Prob. 2.1QCh. 2 - Prob. 2.2QCh. 2 - Prob. 2.3QCh. 2 - Prob. 3.1QCh. 2 - Prob. 3.2QCh. 2 - Prob. 3.3QCh. 2 - Prob. 3.4Q
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- How does technology improve quality and productivity in service?arrow_forwardIdentify the impact of self-service online upon customer experience focusing on potential negative impactsarrow_forwardWhat is a road map in Operations and Supply Chain Management and how is it relevant for business success?arrow_forward
- Choose one of the following services and explain, using specific examples, how each of the differences between goods producing and service providing businesses applies: a. a family practice medical office b. a fire department C. a restaurant d. an automobile repair shoparrow_forwardWhat is the importance for BreadTalk Group to increase the profitability of its bakery division, specifically with regard to its BreadTalk brand?arrow_forwardA fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburger. Current employment is five full-time employees who each work a 40-hour week. If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is its productivity? What would its productivity have been if it had sold the same number of sandwiches (2,100), but the mix was 700 of each type?arrow_forward
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