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Task 2: An aerospace manufacturer has invested in a new equipment to increase the level of automation in its engine wiring operation. Before the
Task 2: An aerospace manufacturer has invested in a new equipment to increase the level of automation in its engine wiring operation. Before the use of this equipment, the manufacturer employed 25 workers, who (together) installed wiring in 6 engines per day. Worker cost is $300 per worker per day. The old equipment's running cost was $4,000 per day. With the new equipment induction, 5 less workers are required in the wiring operation. The new equipment's running cost is $1,000 less than the old (per day), while the output has increased to the wiring of 8 engines per day. [Round answers to 5 decimal places. Show calculations] a. Calculate the labour productivity before and after the new equipment induction. Use engines wired per worker per day as the measure for the labour productivity. (2 Marks) b. Calculate the multi-factor productivity before and after the new equipment induction. Use engines wired per dollar as the measure. (2 Marks) c. Calculate the growth in productivity considering both measures (labour and multifactor productivity). Which productivity measure do you consider more appropriate and why? (4 Marks)
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