University of Tunis Fall 2023

Tunis Business School

Production & Operations Management

Tutorial 1 solutions

Question 1
Productivity during the 1st week = 300/8 = 37,5 bookshelves/worker
Productivity during the 2nd week = 240/6 = 40 bookshelves/worker
Therefore, workers were more productive during the 2nd week.

Question 2

Week Outputs Number Raw Overall productivity

of material (Kg)
employees

1 300 6 45 (300*140)/(6*40*12+1,5*6*40*12+45*6)=5,62
2 338 7 46 (338*140)/(7*40*12+1,5*7*40*12+46*6)=5,45
2
3 322 7 46 4
(322*140)/(7*40*12+1,5*7*40*12+46*6)=5,19
4 354 8 48 6
(354*140)/(8*40*12+1,5*8*40*12+48*6)=5,01
5 222 5 40 2
(222*140)/(5*40*12+1,5*5*40*12+40*6)=4,98
6 265 6 42 1
(265*140)/(6*40*12+1,5*6*40*12+42*6)=4,97
7 310 7 46 8
(310*140)/(7*40*12+1,5*7*40*12+46*6)=5

The company is becoming less and less productive. However, during the last week,
productivity increased.

Question 3
1. Labor productivity with the old equipment = 80/5 = 16 baskets/h
Labor productivity with the new equipment = 84/4 = 21 baskets/h
The employees are more productive on the new equipment.

2. Overall productivity with the old equipment = 80/(5*10+40) = 0,889 baskets/D

Overall productivity with the new equipment = 84/(4*10+50) = 0,933 baskets/D
This measure confirms that the 2nd system is more productive.

3. the variation in labor productivity is more significant than the variation in overall
productivity. Indeed, since we are seeking to compare both systems, overall productivity
is more relevant, as it considers all inputs and not just labor.

Question 4
1. Number of photos to be taken per hour to have 200 photos in good condition =
200/(1-0,05) = 210,526 ≈ 211 photos/hour
Real capacity = 211/0,9 = 234,444 ≈ 235 photos
 2. Each camera should be utilized 70% of the time. That is, during an hour, each camera
must be used 60*0,7 = 42 minutes.
The average output of one camera = 42/2 = 21 photos/hour

3. Number of cameras needed = 235/21 = 11,190 ≈ 12 cameras

4. The higher the efficiency increases, the lower the need for devices, and vice versa.

Question 5
1. Actual production = 120 units/hour
Real capacity = 120/0,8 = 150 units/hour
Each machine is used only for 75% of the time. That is, during an hour, a machine
works 60*0,75 = 45 minutes.
The average output of a machine = 45/3 = 15 units/hour
Number of available machines = 150/15 = 10 machines

2. Real capacity = 120/0,5 = 240 units/hour

Number of necessary machines = 240/15 = 16 machines

Question 6
1. Actual production = 16 tons/8hours = 2 tons/hour
Real capacity = 2 tons/0,5 hour = 4 tons/hour
Each furnace is used only for 80% of the time. That is, during an hour, each furnace
must be used 60*0,8 = 48 minutes.
The average output of a machine = 48/30 = 1,6 tons/hour
Number of furnaces needed = 4/1,6 = 2,5 ≈ 3 furnaces

2. Real capacity = 2/0,4 = 5 tons/hour

Number of furnaces needed = 5/1,6 = 3,125 ≈ 4 furnaces
The decrease in efficiency increases the number of required furnaces.
3. The daily production of the company is the same in both cases. However, the number of
furnaces must be higher with a lifespan of 5 years. To decide the best policy, they need
to be evaluated over the same period, taking into account the residual value of the
furnaces at the end of the period, and then selecting the least costly policy.