Question: 1. You manage a casting company that produces bronze valves on a 10 person assembly line. You produce 160 valves on an 8 hour shift.
a. Calculate the productivity of the line.
b. You change the layout to increase production to 180 valves on an 8 hour shift. What is the new labor productivity per hour.
c. What is the percentage of productivity increase?
2. You produce 1000 bicycle tires per day with the following resources:
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Labor
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400 hours per day @ $12.50 per hour
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Raw material
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20,000 lbs per day at $1 per lb
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Energy
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$5,000 per day
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Capital Costs
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$10,000 per day
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a. What is the labor productivity per labor hour for these tires?
b. What is the multifactor productivity for these tires?
c. What is the percent change in multifactor productivity of you can reduce your energy bill by $1,000 per day without changing other inputs.