Operations and quality control

Assignment #1

Page 21

Prob 1.1
John Lucy makes wooden boxes in which to ship motorcycles. John and his three
employees invest 40 hours per day making the 120 boxes

a) Productivity = 120/40 = 3 units/labor-hour

b) New productivity = 1125/40 = 3.125 units/labor-hour
c) Increase in productivity = 0.125 units/ labor-hour

Prob 1.6

Units produced remain the same

Decrease in labor hours spent for 8.33% (from 300 to 275)

Old Productivity = 1000/300=3.33 units per labor hour
New productivity = 1000/275=3.63 units per labor hour
The difference is an increase in units per labor hour for 0.3 or 0.9%

Decrease in use of (raw material) Resin for 10 % (from 50 to 45)

Old Productivity= 1000/50=20 units per pounds resin
New productivity=1000/45=22.22 units per pounds resin
Productivity difference= 0.22 or 11.1%

Increase in capital invested for 10 % (from 10000 to 11000)

Old Productivity=1000/10000=0.1 units per dollar
New productivity= 1000/11000=0.09 units per dollar
Productivity difference= 0.01 or 11.1%

Decrease in use of energy for 5 % (from 3000 BTU to 2850 BTU)

Old Productivity=1000/3000=0.33 units per BTU
New productivity=1000/2850=0.35 units per BTU
Productivity difference= 0.02 or 0.6%

Prob 1.13

25% increase in demand

How many workers should be added?

Productivity = 2.344 = 1500/labor-hours used

Labor-hour used= 640 hours (considered per month)
It is given that the worker works 160 hours per month then the bakery has
640/160=4 workers,
In order to increase the output by 25%, one more worker should be added:
25% of 4 is =1 or
25% + 1500= 1875 loaves to be produced then 375 loaves to be added
These 375 loaves how many hours they need to be produced?
375/2.344= 160hours (this is the hours spent by one worker per month)
We need just one more worker to perform these 160hours of productivity

Prob 1.14

What to choose: to add one labor or add a blender

a) productivity in loaves per dollar with an increase in labor cost:

With 4 workers: 640 hours and $8 per hour:
Productivity = 1500/5120= 0.29 loaves per dollar
With 5 workers: 800hours and $8/hour:
Productivity=1875/6400= 0.29 loaves per dollar

b) productivity change with only an increase in investment ($100 / month)

Without the increase:
1500/5120=0.29 loaves per dollar
With the increase:
1875/5120+100= 0.359 loaves per dollar

The decision would be better to invest $100 in a blender than to employ a worker

Prob 1.15

I am supposing 1 loaf takes 1 pound of ingredients

For 1500 loaves produced:
Productivity = 1500/500 + 640*8 + 0.35*1500 = 1500/6145=0.244 loaves per
dollar

For 1875 loaves produced:

Productivity = 1875/500 + 800*8 + 0.35*1875= 1875/7556.25=0.248 loaves per
dollar

The increase in productivity is 0.004 or 1.6%