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Case Study 1) How has global competition affected productivity? 2) The SXC Company manufactures electrical assemblies. The current process uses 10 workers and produces 250

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Case Study 1) How has global competition affected productivity? 2) The SXC Company manufactures electrical assemblies. The current process uses 10 workers and produces 250 units per hour. You are considering changing the process with new assembly methods that increase output to 400 units per hour, but will require 15 workers. Particulars are as follows: NEW CURRENT PROCESS PROCESS OUTPUT (UNITS/HOUR) 250 400 NUMBER OF WORKERS 10 15 MATERIAL COST/HOUR $150 $175 Workers are paid at a rate of $10 per hour, and overhead is charged at 150% (or 1.5 times) labor costs. Finished switches sell for $20 / unit. a. What is the multifactor productivity of current process. b. What is the multifactor productivity of new process. c. Based on your answer in a, b above, what decision should be made

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