a) What is their productivity?

Ans: 20 package per hour

b) What will be their new productivity?

Ans: 26.6 package per hour

c) What will be their change in productivity?

Ans: 33.00%
a) What is the labor productivity per dollar?
Ans: 0.0096153846 rugs per dollar

b)what is the multifactor productivity?

Ans 0.0078692494
a)What is the labor productivity per labor-hour for these tires at Lakefront
Manufacturing?
Ans: 2.5
b) What is the Multifactor Productivity for these tires at Lakefront Manufacturing?
Ans: 0.025

c)What is the percent change in multifactor productivity if Fok can reduce the
energy bill by $1,000 per day without cutting production or changing any other
inputs
New Multifactor Productivity 0.026
Ans: 3%
tires per labor-hour

tires per dollar

tires per dollar

Problem 1.5
LAST YEAR NOW
Production(dozen) 1,500 1,500
Labor (hrs) 350 325
Capital Invested ($) 15,000 18,000
Energy (BTU) 3,000 2,750

Solution:
= Produciton / Resource
Resource Last Year NOW Change % Change
Labor (hrs) 4.29 4.62 0.33 7.69%
Capital Invested ($) 0.10 0.08 -0.02 -16.67%
Energy (BTU) 0.50 0.55 0.05 9.09%

After applying the modifications, the productivity did change:

Labor productivity increases by 7.69%
Productivity comes from the additional investment is negative ( -16.67%), I suggest the owner should cut down the monetary i
The energy is used more efficiently, productivity boosts 9.09%. Still, this did not meet the objective from the beginning: at leas
Overall, these modifications helped the owner to get closer to her objective, but it is not beneficial as it was expected.
 er should cut down the monetary input
bjective from the beginning: at least 15% additional efficiency
neficial as it was expected.
 Price Cost Productivity
Labor (hour) 10,000 $20 ### 0.0375
Suspension and engine modification kits 500 $1,000 ### 0.75
Energy (kilowat-hours) 100,000 $3 ### 0.00375
Total cost ###

Multifactor productivity 0.000375

The multifactor productivity is 0.000375 that means the overall performance of your company is good
oductivity

ce of your company is good and all the resource was used efficiently