Compute labor productivity under system

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Directions. This activity will check if you really understand how to compute productivity in every situation. The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining these figures: Week Crew Size Yards installed 1 5 990 2 4 732 3 5 998 4 3 530 5 4 726 6 3 530 a. Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity? 2. A company that makes a product recently purchased some new equipment that reduces the labor content of the jobs needed to produce the product. Prior to buying the new equipment, the company used six workers, who produced an average of 90 units per hour. Workers receive P35 per hour and machine cost was P2,000 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by P500 per hour while output increased by four units per hour. a. Compute labor productivity under each system. Use units per worker per hour as the measure of labor productivity. b. Compute the multifactor productivity under each system. Use units per peso cost (labor plus equipment) as the measure.

Reference no: EM133262588

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