Isbm - Operation Management 5

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OPERATION MANAGEMENT

Q1. Suzan has a part-time “cottage-industry” producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. She currently works a total of 4 hours per day to produce 10 ornaments. a. What is her productivity? b. She thinks that by redesigning the ornaments and switching from use of a wood glue to a hot-glue gun she can increase her production to 20 ornaments per day. What is her new productivity? c. What is her percentage increase (or decrease) in productivity?

Q2. Ahmet grows domatoes in his 100 by 100 meters garden. He then sells the crop at the local farmer’s market. Two summers ago, he was able to produce and sell 1200 kgs of tomatoes. Last summer, he tried a new fertilizer that promised a 20% increase in yield. He harvested 1350 kgs. Did the fertilizer live up to its promise?

Q3. A company has asked YOU to evaluate the firm’s productivity by comparing this year’s performance with last year’s. The following data are available:

______________Last Year This Year OUTPUT 10 500 units 12 100 units Labour Hours 12 000 13 200 Utilities 7 600 MU 8 250 MU Capital 83 000 MU 88 000 MU Has the company improved its PRODUCTIVITY during the past year?

Q4. A firm cleans chemical tank cars in the Bay Gazimagusa area. With standard equipment, the firm typically cleaned 60 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 6 hours a day. The company decided to switch to a larger cleaning machine. Last February, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and two employees worked 6 hours a day. a. What was their productivity with the standard equipment? b. What is their productivity with the larger machine? c. What is the change in productivity?

Q5. Serra’s Ceramics spent 3...