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JACON Limited produces glass bottles for use in a local beverage company. Currently, JACON produces 1 6 0 0 cases of bottles per day. The
JACON Limited produces glass bottles for use in a local beverage company.
Currently, JACON produces cases of bottles per day. The workers at
ALLISON Products work from am until pm with minutes off for lunch
and a minute break during the morning work session and another at the
afternoon work session. JACON is in the competitive packaging industry and
needs to increase productivity to stay competitive. They feel that a percent
increase is needed. JACONs management believes that the percent increase
will not be possible without a change in working conditions, so they change work
hours. The new schedule calls on workers to work from : am until :
pm during which workers can take one hour off at any time of their choosing.
Obviously, the number of paid hours is the same as before, but production
increases, perhaps because workers are given a bit more control over their
workday. After this change, bottle production increased to cases of bottles
per day.
Required:
a Calculate labor productivity for the initial situation marks
b Calculate labor productivity for the hypothetical percent increase
marks
c What is the productivity after the change in work rules? marks
d Write a short paragraph analyzing these results. marks
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