The original productivity of the line was 20 valves per hour. After the changes by John Goodale the line productivity was 22.5 valves per hour. The percent change was 12.5. We found the original productivity by dividing 160 valves produced by an 8-hour shift. The new line productivity was found by dividing 180 valves by an 8-hour shift. Calculating the difference between the new line productivity and the old-line productivity, and then dividing that number by the old-line productivity gave us the percentage increase. See the accompanying graph (1.2) to see the change in productivity over time.
At Lori Cook’s current rate of production of “Final Exam Care Packages” for her resale by her sorority she is producing 100 packages over a 5 hour period. Her productivity for this period is 20 packages/hour. If she redesigns her package to increase her production to 133 packages over the same time frame, her productivity will be 26.6 packages/hour. This displays a 33% increase in Lori’s productivity. The original productivity was calculated by dividing 5 into 100 to get 20 packages/hour. After she redesigned her package productivity would be calculated by dividing 5 into 133 resulting in 26.6 packages/hour. Calculating the difference between the new packages per hour and the old packages per hour, and then dividing that number by the old packages per hour gave us the percentage increase.
George Kyparisis is focusing on efficiency for his Bowling Bowl Plant in Miami. He’s concerned on if his plant is maintaining its manufacturing average of 3% increase in productivity each year. Last year, Mr. Kyparisis produced 1000 units, and continued to produce 1000 units this year. The productivity percentage changes for the plants labor hours is -8.3%, Resin (pounds) is -10%, Capital Investments is 10%, and Energy (BTU) is -5%. One can see in graph 1.6, his organization did not maintain its manufacturing average of a 3% increase in productivity per year. This is due to an increase in capital investment that enabled a decrease in plant labor, resin and energy utilization. Mr. Kyparisis improved his efficiency but did not reach his annual target of 3% productivity, as you can see in graph.
George Kyparisis, who manufactures bowling balls, is looking to increase efficiency at his Miami plant. Last year, he produced 1,000 units during 300 labor hours. On a multifactor basis with dollars as the common denominator, his labor productivity is .33units/ labor dollar. For the current year, his labor productivity is .36units/labor dollar. He increased productivity by 9% during the period. He increased efficiency in his use of resin by 11%/resin dollar during the period. He minimized his capital expense by 9%/capital expenditure $ over the period, and also reduced his use of electricity by 37.87/$ spend on electricity. This is demonstrated in graph 1.7 that shows the percent change for each of them mentioned metrics.
