Answer:
The question continues ; b) Suppose that in the next month, the same work group produced 600 units but there were only 20 workdays in the month. Using the same productivity measures as before, determine the productivity index using the prior month as a base.
Explanation:
given 5 workers produced 500units working 8hrs/day for 22days
We calculate the output unit for each per worker for a month, a day and an hr;
Monthly output unit = 500/5 = 100 = LPR = Productivity ratios
daily output unit = 500/ 5x22 = 4.545 = LPR
hourly output unit = 500/ 22x8x5 = 0.568 = LPR
similarly for 600units produced by the same number but in 20days
Monthly output unit = 600/5 = 120 = LPR = Productivity ratios
daily output unit = 600/ 5x20 = 6.0 = LPR
hourly output unit = 600/ 20x8x5 = 0.75 = LPR
To calculate their productivity index ;
LPI = 120/100 = 1.2 = Monthly output unit
LPI = 6.0/4.545 = 1.32 = daily output unit
LPI = 0.75/0.568 = 1.32 = hourly output unit
