The Copperbelt University

School of Business
DEPARTMENT OF OPERATIONS AND SUPPLY CHAIN MANAGEMENT

4th July 2013 OSM Room 3.

End of Term I Deferred Test

BSc in Purchasing and Supply Chain Management

BSc in Production Management

BSP 234: PRODUCTIVITY METHODS I

Time: 11hrs to 12hrs, Duration: 1hr

Instruction: There are three (3) questions in this exam, answer all (60marks).

You are allowed to illustrate your arguments with relevant practical examples.

QUESTION 1

Steel Works Foundry Limited is a private company operating in the industrial area of
Kitwe town. It is specialized in the manufacture of Mill Balls supplied to Konkola
Copper Mines Plc and Mopani Copper Mines Plc. The Mill Balls are used in the milling
operation to crash and grind copper containing rocks and ores into smaller particles used
in the process of making copper concentrates.

The following table of parameters has been extracted from the production department
monthly report:
Steel Works Foundry Ltd
May Production Report
2nd June 2013
  Line A Line B Line C Line D
Production/day 2,000 2,000 2,000 2,000
Day Shift (hrs) 8 8 8 8
Afternoon Shift (hrs) 6 5 4 3
Night Shift (hrs) 8 8 8 8
Labor (Shopfloor) 95 80 75 94
Month Calendar (days) 30 30 30 30

Cost and Revenue Data

Price per unit 10 10 10 10
Transport Allowance/worker/day 30 30 30 30
Wage per hr (KR) 8 8 8 8
Fixed Cost 25,000 25,000 25,000 25,000

Required:

(a) Compute the labor productivity for each line. (20Marks)

(b) Determine the profit that each line realizes. (10Marks)

(c) Compare the profits using the least profitable line as the base case. (10Marks)

QUESTION 2

Discuss the difference between production and productivity. (10 Marks)

QUESTION 3

How can you improve labor productivity from low to high say 0.2 to 0.9 units per man-
hour? (10Marks)

Wish you all best