improvement in productivity with the changes that have been implemented by the process engineer? Prove your answer though presenting labor productivity, multifactor productivity, and productivity improvement. What is the multifactor productivity before the change in process has been made?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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CE SOLUTIONS is a company that produces office furniturta
table organizers. Currently, the company is utilizing 8 hours per day to complete 85
pcs of the product. Engr Ahmed, the process engineer continuously conducts
evaluations to improve the processes. Finally, after experimenting on several things,
he is convinced that by doing minor changes in the process flow to avoid
redundancy in the process, a new output can be reached as high as 120pcs. The
material cost per organizer is BD 5.5; additional supplies needed to complete the
organizer cost BD 1.50 and labor is paid at the rate of BD 6 per hour, energy cost is
assumed to be BD 2.5 per day and water cost is at BD 1.75. Is there any
improvement in productivity with the changes that have been implemented by the
process engineer? Prove your answer though presenting labor productivity,
multifactor productivity, and productivity improvement. What is the multifactor
productivity before the change in process has been made?
O a. 0.163
O b. 1.43
O c. 1.89
Od. 0.190
Oe. 0.169
Transcribed Image Text:CE SOLUTIONS is a company that produces office furniturta table organizers. Currently, the company is utilizing 8 hours per day to complete 85 pcs of the product. Engr Ahmed, the process engineer continuously conducts evaluations to improve the processes. Finally, after experimenting on several things, he is convinced that by doing minor changes in the process flow to avoid redundancy in the process, a new output can be reached as high as 120pcs. The material cost per organizer is BD 5.5; additional supplies needed to complete the organizer cost BD 1.50 and labor is paid at the rate of BD 6 per hour, energy cost is assumed to be BD 2.5 per day and water cost is at BD 1.75. Is there any improvement in productivity with the changes that have been implemented by the process engineer? Prove your answer though presenting labor productivity, multifactor productivity, and productivity improvement. What is the multifactor productivity before the change in process has been made? O a. 0.163 O b. 1.43 O c. 1.89 Od. 0.190 Oe. 0.169
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