o accompany CHAPTER 1: Operations and Productivity Bob Richards, the production manager of Zychol Chemicals, in Houston, Texas, is preparing his quarterly report, which is to include a productivity analysis for his department. C of the inputs is production data prepared by Sharon Walford, his operations analyst. The repo which she gave him this morning, showed the following: 2008 2009 Production (units) 4,500 6,000 material used (barrels of petroleum by products) 700 900 Labor 22,000 28,000 Capital cost applied to the department $375,000 $620,000 Bob knew that his labor cost per hour had increased from an average of$13 per hour to an average of $14 per hour, primarily due to a move by management to become more competitive with a new company that had just opened a plant in the area. He also knew that his average cost barrel of material had increased from $320 to $360. He was concerned about the accounting procedures that increased his capital cost from $375,000 to $620,000, but earlier discussions with his boss suggested that there was nothing that could be done about that allocation Bob wondered his productivity had increased at all. He called Sharon into the office and conveyed the above information to her and asked her to prepare this part of the report