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Management Studies

Problem;

A company used to produce 300 units every day, but 20% of the units were defective.

a) After installing a new process, the defect rate has been reduced to 5%, while output has remained the same. What is the percent increase in productivity due to installing the new process?

b) Another change in the system resulted in the same defect rate but instead increased the output by 30% (compared to the base case). What is the percent increase in productivity due to this system change?

Solve the given numerical problem and illustrate step by step calculation.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91149706

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