Question

George Kyparisis makes bowling ball in his Miami plant. With recent increases in his cost, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity per Year? He has the following daré representing a month from last year and an equivalent month this year: last year NowUnits produced 1,000 1,000Last (hours) 300 275 Resin (pounded) 50 45Capital invested ($) 10,000 11.000 Energy (BTU) 3.000 2,850Show the productivity percentage change for each category and then determine the improvement for labor hours, the typical standard for comparison. PX

Answer 1

We compute the productivity percentage change of each category using the formula:

$\text{\% Change }=\frac{\text{ Value now - Value last year}}{\text{Value last year}}\cdot100\%.$

Productivity percentage change for each category

1) Units produced:

$\frac{1,000-1,000}{1,000}\cdot100\%=0\cdot100\%=0\%.$

2) Last (hours)

$\frac{275-300}{300}\cdot100\%=-\frac{25}{300}\cdot100\%=-8.33\%.$

3) Resin (pounded)

$\frac{45-50}{50}\cdot100\%=-\frac{5}{50}\cdot100\%=-10\%.$

4) Capital invested ($)

$\frac{11,000-10,000}{10,000}\cdot100\%=\frac{1,000}{10,000}\cdot100\%=10\%.$

5) Energy (BTU)

$\frac{2,850-3,000}{3,000}\cdot100\%=\frac{-150}{3,000}\cdot100\%=-5\%.$

2) Improvement for labour hours

From the previous computations, we see that the percentage change of the category "Last (hours)" has a negative value of -8.33%, which means that this value decreased by 8.33% with respect to the last year.

Answer

1) Productivity percentage change for each category

0. Units produced: ,0%

,

1. Last (hours): , -8.33%

,

2. Resin (pounded):, -10%

,

3. Capital invested ($): ,10%

,

4. Energy (BTU): ,-5%

2) Improvement for labour hours

The percentage change of the category "Last (hours)" has a negative value of -8.33%, which means that this value decreased by 8.33% with respect to the last year.