MS29P TutorialQuestionsProdvty ProcAnalysis

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TUTORIAL QUESTIONS – MS29P


PRODUCTIVITY AND PROCESS ANALYSIS

1. Joan Blackstock produces Christmas tree ornaments for resale. She is currently
working a total of 15 hours per day to produce 300 ornaments.
(a) What is Joan’s productivity
(b) Joan thinks that by redesigning the ornaments and switching from use of a
contact cement to a hot-glue gun, she can increase her total production to
400 ornaments per day. What is her new productivity?
(c) What is the increase in productivity?
2. Delroy and Jackie bake apple pies for resale to local supermarkets. They and their
three employees invest 50 hours per day making 150 pies.
(a) What is their productivity
(b) They had discussed reassigning work so the flow through the bakery is
smoother. If they are correct and they can do the necessary training, they
think they collectively can increase apple pie production to 155. What is
their new productivity?
(c) What is their increase in productivity?
3. What is the purpose of process analysis?
4. The purpose or rational for an organization’s existence is its ………………..
5. The six ways to position resources are …………………………………………
6. Productivity tends to be lower in the service sector because the work is:
(a) typically labor intensive
(b) frequently individual processed
(c) often an intellectual task performed by professional
(d) dependent upon an extensive capital base
(e) a, b & c
7. Among the ways for a firm to use effectively its OM function to yield competitive
advantage are:
(a) rapid design changes
(b) speed of delivery
(c) maintain a variety of product options
(d) all of the above
(e) none of the above
8. ABC Limited has recently instituted an incentive program to meet additional
customer demand. The current figures are set out below:
Original Production - Production = 160 units, Wages = 10 workers @ $65 per
week and Fixed cost = $2,500 per week
Production during Incentive Program - Production185 units, Wages = 10
workers @ $40 per week and Bonus = $14.25 for each additional unit produced
over 160 units.
The factory manager is considering suspending the incentive program as he is
spending more on weekly wages. However, the cost accountant thinks otherwise.
How would you advise in this situation? Calculate and explain if productivity has
increased after the introduction of the incentive program.
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D. Anthony Chevers

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