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Nike in one of its operation has recently noted increase in costs and therefore have been aiming towards improving efficiency. The operation manager Cedric Masuku

Nike in one of its operation has recently noted increase in costs and therefore have been aiming towards improving efficiency. The operation manager Cedric Masuku is interested in determining the productivity of his organization and would like to know if his organisation is maintaining the manufacturing average of 3% increase in single and multi-factor productivity. Compile a report highlighting if this is being achieved, use the the relevant calculations. He has the following data representing a month from last year and equivalent month this year

Last now
units produced 2000 2000
Labour (Hours 300 275
Resin (Kilograms) 50 45
Capital invested (rands) R10000 R10000
Energy (watts) 3000 2850

The costs have been determined to be as follows

Labour R10 per hour

Resin R5 per Kilogram

Capital 1% per month of investment

Energy R0.50 per watt

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