# Productivity Essay

864 WordsSep 16, 20144 Pages
Assignment Last Date of submission: Section A – Sunday (21-9-2014) Sections B, F and H – Monday (22-9-2014) 1. XYZ Company assembles a certain type of television. Price of each TV is \$350. Average wage of the worker is \$3.00 per hour. To setup the assembling machines 4.8 million dollar has been invested. The life of the machines is 10 years. Last three years data is given in the following table. | |2010 |2011 |2012 | |Output per day |45 |50 |48 | |Avg. no. of worker |120 |130 |115 | |Avg. Overhead cost per month |\$42500 |\$50750 |\$45000 | |Material cost to per TV |\$105 |\$107.50 |\$106 | There are 25 working days in a month and 12 working hours in a day. i. Compute labor, machine and overhead and overall productivity for the last three years. ii. The company implemented TQM and new management at the beginning of the year 2013, who has increase the production rate of the TV by reducing assemble time of each TV by 20% with a overhead cost of \$55000 per month. Average no. of worker was 135. Other costs of resources remain as same as year 2012. Calculate new overall productivity and comments on the change. 2. An IPS manufacturing company changes production system from present system to new system. With present system, the company uses 25 workers, who can produce on an average 30 and 25 IPS per day of type-1 and type-2 respectively, but on an average 20% manufactured IPS are rejected. Each worker receives Tk.5000 per month and tools and equipment cost (i.e., machine cost for the first system) was Tk.6000 per day. With the new system the company can produce 50 and 30 IPS per