Wright Manufacturing has recently studied its order-filling process and initiated some changes that were expected to improve its efficiency. The changes involved such things as redesign of the plant layout, redesign of documents, keyboard training, and improvement in automated system controls. The changes were expected to improve process productivity over a period of several years. The order-filling process is defined by the following three ac¬

tivities: handling goods, entering data, and detecting errors. The output measure for the process is the number of orders filled. The handling activity's output (movement of goods)

is measured by yards traveled; the entering data activity's output is measured by data en¬

try time; and the output of detecting errors is measured by the number of documents in¬

spected (compares document data with input record). Data for the year prior to the changes and for two years following the changes are given below:

Required:
1. Calculate the productivity profiles for all three years. What can you say about produc¬
tivity improvement for this process? Comment on the value of multiyear comparisons of productivity profiles.
2. Calculate the profit-linked measures for 2000 and 2001, using 1999 as the base year for 2000 and using 2000 as the base year for 2001. Is there any value to changing base years?
Explain.

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1999 2000 2001 Output measures: Number of orders filled 150,000 165,000 200,000 Yards traveled 1,500,000 825,000 400,000 Data entry time (hrs.) 50,000 41,250 40,000 Documents inspected 150,000 82,500 50,000 Activity rates: Handling goods (per yard) $1 $1 $1.25 Entering data (per hour) $7 $7 $8.00 Detecting errors (per document) $2 $2 $2.00