Highest productivity increase in terms of labor only

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Reference no: EM132084072

Jean is the plant manager of Asus’ laptop computer in Asia and she wants to determine the best option proposed by her supervisors to increase the productivity performance of the manufacturing plant.Currently, the plant has 50 staff members working 8 hrs/day at a rate of $15.00/hr. There are two machines and each consume 200 kilowatt-hrs(KWH) of power per day at a cost of $1.00/KWH. The plant produces 20 units per day and the material cost is per unit $6.00. Option 1 is to reduce the number of staff members by 22% and the payroll cost per hour by 20% but raise the power cost per KWH by 100%. Option 2 is to reduce the number of staff members to 20% and the material cost per unit by 50% but raise the number of machines by 150%. Option 3 is to raise the working hours per day by 25%, KWH used per machine by 10%, and units produced per day by 70%. Which of the three options can provide the highest productivity increase in terms of labor only, power only or both factors?

Reference no: EM132084072

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