Question
OPERATIONS MANAGEMENT QUESTION PC.54 Claire & Dee's Tire Factory in Rexburg provides a free tire-rotation service for customers who purchase tires from them. For years
OPERATIONS MANAGEMENT QUESTION
PC.54 Claire & Dee's Tire Factory in Rexburg provides a free tire-rotation service for customers who purchase tires from them. For years this process took an average employee about 19 minutes to perform. Since they make no additional revenue from this service, they would like to make this process as efficient (or productive) as possible. Recognizing this challenge, management and key employees analyzed the process and made some time-saving changes. Over the course of a month they trained all employees on the new process, and after doing so, an average employee could rotate a set of four tires in about 14minutes.
In this case, what is theoutputthat should be used for productivity calculations?
14 minutes
1 (set of rotated tires)
4 (individually rotated tires)
19 minutes
After making the time-saving changes mentioned above, how times could an average employee complete the process in one hour? (twodecimal places.)
After making the time-saving changes mentioned above, by what percentage did Claire and Dee's tire-rotation process increase itsproductivity? (percentage,and twodecimal places.)
%
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