Question
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity per year.
He has the following data representing a month from last year and an equivalent month this year:
LAST YEAR NOW
Units produced last year were 1,000 and current year are 1,000
Labor (hours) last year were 300 and current year are 275
Resin (pounds) last year were 50 and current year are 45
Capital invested last year was ($) 10,000 and current year is ($) 11,000
Energy (BTU) last year consumed 3,000 and this year is 2,850
Show the productivity percentage change for each category and then determine the improvement for labor-hours, the typical standard for comparison.
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