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:
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).
\begin{tabular}{|l|c|c|} \hline & 2022 & 2021 \\ \hline Units & 20,000 & 16,000 \\ \hline Direct materials (pounds) & 14,000 & 13,000 \\ \hline Direct labor (hours) & 5,250 & 6,000 \\ \hline Cost of materials per pound & $10.00 & $8.00 \\ \hline Cost of direct labor per hour & $25.00 & $20.00 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|} \hline & 2022 & 2021 \\ \hline Units & 20,000 & 16,000 \\ \hline Direct materials (pounds) & 14,000 & 13,000 \\ \hline Direct labor (hours) & 5,250 & 6,000 \\ \hline Cost of materials per pound & $10.00 & $8.00 \\ \hline Cost of direct labor per hour & $25.00 & $20.00 \\ \hline \end{tabular}Step by Step Solution
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