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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 1600 cases of bottles per day. The 20 workers at
ALLISON Products 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. JACON is in the competitive packaging industry and
needs to increase productivity to stay competitive. They feel that a 20 percent
increase is needed. JACONs management believes that the 20 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 7:30 a.m. until 4:30
p.m., 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 1800 cases of bottles
per day.
Required:
a) Calculate labor productivity for the initial situation [4marks]
b) Calculate labor productivity for the hypothetical 20 percent increase [4
marks]
c) What is the productivity after the change in work rules? [3 marks]
d) Write a short paragraph analyzing these results. [4 marks]

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