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Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1 6 0 0 valves per day. The 2 0

Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work session and another at the afternoon work session. Gibson is in a competitive industry, and needs to increase productivity to stay competitive. They feel that a 20 percent increase is needed.
Calculate labor productivity for the initial situation valves/hour
Calculate labor productivity for the hypothetical 20 percent increase valves/hour
What is the overall daily output target, given the 20 percent increase?
What is the increase in labor productivity comparing the initial production to the needed change?
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