Problem 1

In an insurance company, three employees in the claims department process 60

policies in a week. They work 8 hours per day and 5 days per week. Determine
productivity.

Employees 3
Hours per day 8
Days per week 5
No. of Insurance policies processed 600
Labor Productivity, policies per hour 5

Problem 2
Johan makes wooden boxes for a customer. Johan and his three employ
120 boxes. What is their productivity? Johan and his employees have di
improve efficiency. If they can increase the rate to 140 per day, what w
their increase in productivity?

Old process
Number of boxes produced 120
Number of hours invested per day 40
Productivity 12
Percent change in productivity

Problem 3
A team of workers make 530 units of a product, which is valued at its standa
markups and profit. The accounting department reports that for this job the
labor, $1100 for materials, and $400 for overhead. Determine the multifactor

No. of units produced 530

Standard cost 14
Labor cost 500
Material cost 1100
Overhead 400
Multifactor productivity 3.71

Problem 4
In a commercial branch of a bank five tellers served a total of 2400 customers over
of one week. The banks working hours are 10 AM to 4 PM. Determine the productiv
tellers. Assume a 5-days week.

Number of customers served 2400

Number of tellers 5
Hours per day (from 10 AM to 4 PM) 6
Days per week 5
Productivity of the tellers 16
 Problem 5
The manager of a crew that installs carpeting has tracked the crew's ou
weeks, obtaining the figures below. What is the labor productivity per p
basis of your calculations, what can you conclude about the crew size w
productivity?

Productivity= (Yards installed)/(Crew

size) Week

1
2
3
4
5
6

Problem 6

Martin Manufacturing uses two measures of productivity: a) total sales/

total sales/total labor inputs.  Given data for the last three years, calcul
productivity ratios.  How would you interpret the results? Figures in '00

Year 1
Sales 110
Materials 62
 Labor 28
Overhead 8
Total inputs 98
Total sales / total inputs 1.12244897959184
Percent change
Total sales / total labor inputs 3.92857142857143
Percent change

Problem 7

Fast Forward Co has generated productivity data for the first two quarte
dollar measures of input and output, compare the total profit and produc
first two quarters.  How does Q2 productivity compare with Q1 productiv
be done to improve productivity and profitability during Q3.

Q1
Unit selling price, $ 20
Total units sold 10,000
Labor hours 9,000
Labor cost/hr, $ 10
Material usage (lb) 5,000
Material cost/lb, $ 15
Other costs, $ 20,000

Output in $ 200000.00
Labor input in $ 90000.00
Material input in $ 75000.00
Total input in $ 185000.00
Productivity -total factor 1.08
Productivity - Labor 2.22
Productivity -Material 2.67
Profit (= Total sales - total cost) 15000.00

Problem 8
Super Industries have collected data about the old system and the new
would like to compare the productivity in terms of labor and total factor
an improvement in productivity?

Old system
Output/hr 5
Workers 80
Wage $/hr 10
Machine $/hr 40
Labor productivity, units per worker 0.0625
TFP Productivity, units per dollar 0.01

Problem 9

Wearwell produces fashionable garments. During a particular wee

hours to produce a batch of 132 garments of which 52 were secon
defects. Seconds are sold for $90 each at the factory outlet store. T
garments are sold to retail distribution at $200 each. What is the la
of this manufacturing process in financial and operational units?
 Total garments produced 132
Total input labor hours 360
Garements with defects 52
Garments without defects 80
Selling price of defective garments 90
Selling price of good garments 200
Total revenue generated 20680
Labor productivity -
operational, garments per hour 0.37
Labor productivity -
financial, dollars per hour 57.44

Problem 10

A retail store had sales of $ 45,000 in April and $ 56,000 in May. The store em
workers who work a 40 hour week. In Week 1 the store also had seven part-ti
week and in Week 2 the store had nine part-time workers at 15 hours per wee
measure of output, what is the percentage change in productivity from April t

Week 1
Sales in $ 45000
Full time workers 8
Full time hours 40
Part time workers 7
Part time hours 10
Total labor hours 390
Labor productivity, $ per hour 115.38
Percent change in labor productivity

Problem 11
Compare the productivity on we
the data in the Table. What do y
hours of labor per week. Selling

Week

1
2
3
4
5
6
7
partment process 600 insurance
er week. Determine the labor

Answer

nd his three employees invest 40 hours per day making the

employees have discussed redesigning the process to
40 per day, what will be their new productivity? What will be

New process
140
40
14 Answer
16.67 Answer 𝑷𝒆𝒓𝒄𝒆𝒏𝒕 𝒄𝒉𝒂𝒏𝒈𝒆= ((𝑵𝒆𝒘 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 −𝑶𝒍𝒅
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚) 𝑿 𝟏𝟎𝟎)/(𝑶𝒍𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚)

3.5
valued at its standard cost of $14 each before
hat for this job the actual costs are $500 for
mine the multifactor productivity

Number produced at standard cost

Multifactor productivity =
Labor cost + Materials cost + Overhead cost

(530 units) ($14 per unit)

Multifactor productivity =  3.7
Answer $500 + $1100 + $400

2400 customers over a period

ermine the productivity of the

Answer
cked the crew's output over the past several
productivity per person for each week? On the
out the crew size which yields the highest

Yards
Crew size Productivity
installed
4 960 240
3 702 234
4 968 242
2 500 250
3 696 232
2 500 250

vity: a) total sales/total inputs, b)

three years, calculate the
ults? Figures in '000 s of dollars.

Year 2 Year3
129 124
73 71
 33 28
12 10
118 109
1.09322033898305 1.1376146789 Answer
-2.6040061633282 4.0608776047
3.90909090909091 4.4285714286 Answer
-0.495867768595 13.289036545

he first two quarters of the year. Using

l profit and productivity achieved for the
with Q1 productivity?  Identify what might
g Q3.

Q2
21
8,500 200000 15000
8,000 90000
10 75000
4,500 20000
15.5 185000
18,000

178500.00
80000.00
69750.00
167750.00
1.06
2.23
2.56
10750.00
 stem and the new system and
bor and total factors. Is there

New system
4
84
10
50
0.04761904761905
0.0045

a particular week employees work 360

ch 52 were seconds because of some
ory outlet store. The remaining 80
ch. What is the labor productivity ratio
erational units?
n May. The store employs eight full-time
o had seven part-time workers at 10 hours per
t 15 hours per week. Using sales value as the
ctivity from April to May?

Week 2
56000
8
40
9
15
455
123.08
6.67
 productivity on weekly basis at Calvin Industries given
e Table. What do you comment? Each worker puts in 40
r per week. Selling price is $140 per unit.

Total Material cost Total Labor

Output (Units) Workers Materials (lb)
(per lb = $6) cost ($12/h)
300 6 45
338 7 46
322 7 46
354 8 48
222 5 40
265 6 42
310 7 46
𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 −𝑶𝒍𝒅
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚)
duced at standard cost
erials cost + Overhead cost

nits) ($14 per unit)

 3.71
+ $1100 + $400
Overhead = 1.5 * Total Total Multi factor
Weekly labor cost cost revenue productivity