Pomug Strategy Assignment 2 PDF

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Name ____________Patrick McLean______________ QSO 205 Business Operations Management Assignment # 2 Productivity Measures

Problem 1 ABC attire makes fashionable garments. During a particular week employees worked 360 hours to produce a batch of 132 garments, of which 52 were “seconds” (meaning that they were flawed).

Seconds are sold for $90 each at attire’s factory Outlet Store. The remaining 80 garments are sold to retail distribution at $200 each. What is the labor productivity ratio of this manufacturing process? Please show steps and calculations. Solution Labor Productivity = #sales/#hours = (52*90) + (80*200)/360 = $57.44 per hour

Problem 2 Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the Big Red Herrings to winning form. Because of the current state of the program, Boehring University fans are unlikely to support increases in the season ticket price. Improved recruitment will increase overhead costs to $30,000 per class section. The university's budget plan is to cover recruitment costs by increasing the average class size to 75 students. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about

$25 per student for each 3-credit course. Tuition will be $200 per semester credit, which is supplemented by state support of $100 per semester credit. a) What is the multifactor productivity ratio? Note: Show all steps and calculations.

Manufacturing Productivity Ratio = Total Output/Total Input Total Output = 75*3*300 = $67,500 Total Input = 6500 + ($25*75) + $30,000 = $38,375 Multifactor Productivity Ratio =67500/38375 = 1.76

b) If instructors work an average of 20 hours per week for 16 weeks for each 3-credit class of 75 students, what is the labor productivity ratio? Note: Show all steps and calculations. P= O/I Labor Input = 20hrs*16wk = 320hrs/class Labor Productivity Ratio = Output/I = $67,500/320hrs = $210.94 per hour...