Ops Management & Productivity

For this module case study I chose Part 2: Calculating Productivity. C. A. Ratchet, the local auto mechanic, finds that it usually takes him 2 hours to diagnose and fix a typical problem. What is his daily productivity (assume an 8 hour day)?

Using the background slides for calculating productivity I was able to calculate Mr. Ratchet current productivity.

Mr. R 8 labor hrs/day 4 Find & Fix/day

8 hours of work/2 hours of work per find & fix = 4 find & fix

Take the find and fix over the labor hours used.

4 F&F/day = 0.5 F&F/labor-hrs

8 hrs/day

Mr. Ratchet believes he can purchase a small computer trouble-shooting device, which will allow him to find and fix a problem in the incredible (at least to his customers!) time of 1 hour. He will, however, have to spend an extra hour each morning adjusting the computerized diagnostic device. What will be the impact on his productivity if he purchases the device?

Mr. R 8 labor hrs/day 7 Find & Fix/day

8hrs of work/ 1hr of work per find & fix – 1hr of work to adjust the device =

7 find & fix

Take the find and fix over the labor hours used.

7 F&F/day = .875 F&F/labor-hrs

8 hrs/day

The productivity change: take the new productivity minus the current productivity divided by the current productivity.

= (.875-.5)/ .5

= .375/ .5

=.75 or 75%

If Mr. Ratchet were to purchase a small computerized trouble shooting device his productivity will increase by 75%.

Reference:

Gerhard J. P. (2002) International Operations Management. Copenhagen Business School Press ISBN: 8-76-300068-7

Heizer, J and Render B. (2001) Principles of Operations Management, ISBN 0-13-027147-0

Introduction to Operations Management PowerPoint slide 1