Production Output (Units)

M T W R F S S
Wk1 2000 2500 3000 1000 2500 1500 1500
Wk2 2100 2600 2800 1000 2400 1400 1600
Wk3 2200 2600 2800 1100 2300 1300 1700

Design Capacity Effective Capacity

M-F 13500 13200

S&S 3600 3520

Total 17100 16720

What is the efficiency of the plant in each week?

What is the utilization of the plant in each week?
What is the effectiveness of the plant in each week?
Are the investors satisfied with KREK Enterprises?
 Actual Output
Quality Goods Proportion Total Efficiency Utilization Effectiveness
0.98 14000 83.73% 81.87% 67.18%
0.95 13900 83.13% 81.29% 64.20%
0.99 14000 83.73% 81.87% 67.87%
RESOURCE LAST YEAR THIS YEAR
Production Quanity (units) 8000 9500
Labor (hours) 400 400
Plastic (lbs) 110 125
Electricity (Units) 40000 42500
Miscellaneous Overhead ($) 5000 5400
Retail Price ($) 0.67 0.71
Labor Wage per Hour ($) 12.55 13.1
Plastic Cost per lbs ($) 2.55 2.65
Electricity Cost per Unit ($) 0.01 0.02

Utilizing the following data determine the expected output by each department.

Department Effective Capacity Design Capacity Recent Efficiency

Moulding 96000 112000 0.78
Casting 125000 135000 0.65
Finishing 78000 90000 0.85
Part A &B Productivity LAST YEAR THIS YEAR CHANGE %
Labor (hours) 1.07 1.29 0.22 20.56%
Plastic (lbs) 19.11 20.36 1.25 6.56%
Electricity (Units) 13.40 7.94 -5.46 -40.78%
Miscellaneous Overhead ($) 1.07 1.25 0.18 16.52%
Total 0.50 0.57 0.07 13.91%

Part D Expected Output Quality Proportion Part F Effectiveness Utilization Part E. Investors will not be ha
74880 0.82 42.76% 66.86%
81250 0.75 29.34% 60.19%
66300 0.92 57.61% 73.67%
 Part c. They need to focus on their productivity with respect to the use of electricity.

Part E. Investors will not be happy as both effectiveness and utilization are low.