Operations Management Essay

309 Words2 Pages
7. Unit Employees Customers Processed A 4 36 B 5 40 C 8 60 D 3 20 Hourly Wage Rate= $25 Overhead Rate = 1.0 times labor cost Material Cost = $5 per customer 7a) Labor Productivity = Output/ Input Unit A: 36 customers/ (4workers*8hrs) = 1.125 = 1 customer Unit B: 40 customers/ (5workers*8hrs) =1 = 1 customer Unit C: 60 customers/ (8workers*8hrs) =.938 =1 customer Unit D: 20 customers/ (3workers*8hrs) =.833 =1 customer Multifactor Productivity= Output/Labor + Materials + Overhead Unit A: 36/ (4*8*25) + (5+36) + (4*8*25*1) = .020 = .020 Unit B: 40/ (5*8*25) + (5*40) + (5*8*25*1) =.018 = .018 Unit C: 60/ (8*8*25) + (5*60) + (8*8*25*1) =.017 = .017 Unit D: 20/ (3*8*25) + (5*20) + (3*8*25*1) =.015 = .015 7b) Labor Productivity= Output/ Input Unit A: 37 customers/ (4workers*8hrs) = 1.156 = 1 customer Unit B: 41 customers/ (5workers*8hrs) = 1.025 = 1 customer Unit C: 61 customers/ (8workers*8hrs) = .953 = 1 customer Unit D: 21 customers/ (3workers*8hrs) = .875 = 1 customer Multifactor Productivity= Output/Labor + Materials + Overhead Unit A: 37/ (4*8*25) + (5+37) + (4*8*25*1) = .021 = .021 Unit B: 41/ (5*8*25) + (5*41) + (5*8*25*1) = .019 = .019 Unit C: 61/ (8*8*25) + (5*61) + (8*8*25*1) = .017 = .017 Unit D: 22/ (3*8*25) + (5*21) + (3*8*25*1) = .016 = .016 9) 3 employees 40 hours worked $25 wage rate 3,000 Avg. lead week 5,000 List 4% Avg. sign up $70 Fee $1,000 per week Material Cost $9,000 per week Overhead Cost MFP= (Possible leads) (No. of workers) (Fee) (Conversion Percentage) Worker Cost + Material Cost + Overhead Cost (3,000) (3) (70) (.04) ___------- (3*40*25) + (1,000) + (9,000) Multifactor

More about Operations Management Essay

Open Document