MREPROM-EG

ALEJANDRO ANTE ATENCIANA OPERIANO VILLAVER

GIVEN CONDITIONS
Johnson makes billiard balls in his New England Plant. } Because of increasing costs, he wants to improve efficiency by determining productivity. } He targets 3% increase in productivity per year.
} Eric

The following data shows 1 month performance this year and last year.
Last Year Units Produced Labor (hrs) Resin (pounds) Capital ($) Energy (Btu) 1000 300 50 10000 3000 Now 1000 275 45 11000 2850

TASK
} Show

the productivity change for each category and then determine the improvement for labor-hours

SOLUTION
} Formula

for productivity

Productivity = output/input

SOLUTION
Labor - Hrs productivity:
} Last

Year Labor - Hrs Productivity = 1000/300 = 3.333 year Labor - Hrs Productivity = 1000/275 = 3.637

} This

SOLUTION
Resin productivity:
} Last

Year Resin Productivity = 1000/50 = 20 year Resin Productivity = 1000/45 = 22.222

} This

SOLUTION
Capital productivity:
} Last

Year Capital Productivity = 1000/10000 = .1 year Capital Productivity = 1000/11000 = .091

} This

SOLUTION
Energy productivity:
} Last

Year Energy Productivity = 1000/3000 = .333 year Energy Productivity = 1000/2850 = .351

} This

SOLUTION
Improvement in the labor hours last year and this year comparison:
} Last } This

year labor-hrs productivity = 3.333

year labor-hrs productivity = 3.637 Percentage increase = 9.12%

CONCLUSION
Increase in the productivity per month Labor (hrs) Resin (pounds) Capital ($) Energy (Btu) 9.12% 11.1% -9% 5.31%

CONCLUSION
Eric Johnsons company is successful in increasing its productivity at least 3% given the table above which shows the increase in productivity per month in separate categories.

END
THANK YOU!!