Question
In 2021 Samara Inc. implemented a program to improve product quality. The quality program focused on improving negotiating skills of managers that are responsible for
In 2021 Samara Inc. implemented a program to improve product quality. The quality program focused on improving negotiating skills of managers that are 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 Samara include: 2022 2021 Units 20,000 16,000 Direct materials (pounds) 14,000 13,000 Direct labor (hours) 5,250 6,000 Cost of materials per pound $ 10.00 $ 8.00 Cost of direct labor per hour $ 25.00 $ 20.00 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 Samaras quality program effective? Support your answer with relevant insights from your productivity analysis above (dont repeat calculation results).
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