Q. 1. A local market research organization has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past the organization has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach an experienced person can complete an average of 10 such projects in an eight-hour day. The organization management is thinking of assigning two people to each project in order to allow them to specialize and become more efficient. The process would require the data gatherer to fill out a matrix on the computer, check it and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another but the analysis must be complete before the statistical analysis program can accept the new data. After some practice the new process can be completed with a standard time of 20 minutes for the data gathering and 30 minutes for the analysis.
a. Illustrate what is the production (output per hour) for each alternative? Illustrate what is the productivity (output per labour hour)?
b. Explain how long would it take to complete 1,000 projects with each alternative? Illustrate what would be the labour content (total number of labour hours) for 1,000 projects for each alternative?