Question
In 2021 Navarro Corp. implemented a program to improve product quality. The quality program focused on training the managers responsible for the purchase of raw
In 2021 Navarro Corp. implemented a program to improve product quality. The quality program focused on training the managers responsible for the purchase of raw materials. The quality program also included training for direct labor assembly employees to improve skills in the manufacturing process. Selected 2022 and 2021 results for Navarro are as follows: 2022 2021 Units 136,000 124,000 Direct materials (pounds) 60,000 54,000 Direct labor (hours) 20,000 18,000 Cost of materials per pound $ 4.00 $ 3.80 Cost of direct labor per hour $ 30.00 $ 28.00 a. Calculate the partial operational productivity of Direct Materials and Direct Labor for 2022 and 2021 (round answers to four decimals). b. Calculate the partial financial productivity of Direct Materials and Direct Labor for 2022 and 2021 (round answers to four decimals). c. Was Navarros quality program effective? Support your answer with relevant insights from your productivity analysis above (dont repeat calculated amounts from above).
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