QUESTION 1

(14 MARKS) An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts. 1.1 If a worker can produce 10 parts/hour, how many workers are needed on each shift? (4 marks)

1.2 If each shift has 100 workers, what is the productivity of an individual worker? (5 marks)

1.3 If material costs are R10/part, capital costs are R100,000 and labor costs are R10/hour, what is the multifactor productivity of the plant from part (a)?