- Compare the productivity after Bonus with the initial productivity. - Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.
A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40% of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50% will be given to workers and the other 50% will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units.
- Compare the productivity after Bonus with the initial productivity.
- Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.
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