1. BBQ Fun, a BBQ manufacturer, has found that it takes 1.5 hours for two people to assessable their leading four-burner BBQ. BBQ currently employs 18 people in its assembly plant. Each worker works from 8:30am to 5:00pm five days a week. There is a lunch break of half an hour each day.

Determine the current daily labour productivity of BBQ Fun's plant.

1. BBQ Fun believes they can purchase a new tool press for each employee, which will allow them to assemble a typical BBQ in two hours with one person only. Each employee will, however, have to spend an extra 60 minutes each morning preparing the new equipment.

Determine the impact on the labour productivity rate if BBQ Fun purchases the new equipment?

1. The forecast demand for BBQ Fun's four burner BBQ shows a sharp increase and BBQ intends to retain all existing employees so it can meet demand.

What is the new annual productive capacity of the plant (assume 48 available weeks per year and no public holidays)?

1. If the original labour rate allocation was $45 per hour and each machine press costs $1,850, calculate the new required hourly labour rate allocation if BBQ Fun requires a payback period of 26 weeks.