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the industry. For instance, in one of the construction projects spearheaded by Care Construction which involved the installation of a set of 4 self-checkout

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the industry. For instance, in one of the construction projects spearheaded by Care Construction which involved the installation of a set of 4 self-checkout lanes for Spar Ballito had a number of productivity issues to be addressed. The new self-checkout lane setup was meant to replace 2 old cashier lanes that were staffed by a cashier and bagger on each lane. One cashier manned all 4 self-checkouts (answering questions, checking for un-scanned items, taking coupons, etc). The checkout on the new lanes takes 2 minutes (customers bag their own orders) while checkout with the old lanes took only 45 seconds. In addition, the electricity costs for both setups were estimated at R0.05 per checkout while bagging (material) costs R0.10 per checkout with the old system and R0.15 for the new system. The new lanes also required R100/shift in capital costs. Assume that the lanes are always in use for 8 hours per day (1 shift) and the worker makes R10/hour. 1.2 With reference to the Spar Ballito self-check-out data provided, determine how many checkouts did the old system and new system provide in a shift and calculate the multifactor productivity for the new system. (15 marks)

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