Reference no: EM132730032

For the last ten years, the Universal Company has produced an average of 100 units per hour, 25 percent of which are defective, yielding 75 good units per hour. The board of directors now demands that top management increases productivity by 10 percent. The directives go out to the employees, who are told that instead of producing 100 units per hour, they must produce 110 units per hour. Responsibility for producing more units falls on the employees, creating stress, frustration, and fear. They try to meet the new demands, but must cut corners to do so. The pressure to raise productivity creates a defect rate of 20 percent and only increases production to 105 units, yielding 84 good units per hour, two fewer than the original 80 good units per hour. Calculate the percentage (%) change in productivity. (Round off to two decimal places).