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Assignment 1

This document contains solutions to operations and quality control assignment problems. It analyzes productivity increases and decreases based on changes in labor hours, raw materials, capital investment, energy usage, and demand. Key findings include: 1) Increasing labor hours from 40 to 120 per day increased productivity from 3 to 3.125 units per labor hour. 2) Decreasing labor hours, raw materials, capital investment, and energy usage resulted in productivity increases between 0.3-11.1%. 3) To meet a 25% increase in demand, one additional worker working 160 hours per month is needed. 4) It is more cost effective to invest $100 in a new blender than hire another worker to increase output. 5) Increasing

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meray8
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2K views

Assignment 1

This document contains solutions to operations and quality control assignment problems. It analyzes productivity increases and decreases based on changes in labor hours, raw materials, capital investment, energy usage, and demand. Key findings include: 1) Increasing labor hours from 40 to 120 per day increased productivity from 3 to 3.125 units per labor hour. 2) Decreasing labor hours, raw materials, capital investment, and energy usage resulted in productivity increases between 0.3-11.1%. 3) To meet a 25% increase in demand, one additional worker working 160 hours per month is needed. 4) It is more cost effective to invest $100 in a new blender than hire another worker to increase output. 5) Increasing

Uploaded by

meray8
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Operations and quality control

Assignment #1

Page 21

Prob 1.1
John Lucy makes wooden boxes in which to ship motorcycles. John and his three
employees invest 40 hours per day making the 120 boxes

a) Productivity = 120/40 = 3 units/labor-hour


b) New productivity = 1125/40 = 3.125 units/labor-hour
c) Increase in productivity = 0.125 units/ labor-hour

Prob 1.6

Units produced remain the same

Decrease in labor hours spent for 8.33% (from 300 to 275)


Old Productivity = 1000/300=3.33 units per labor hour
New productivity = 1000/275=3.63 units per labor hour
The difference is an increase in units per labor hour for 0.3 or 0.9%

Decrease in use of (raw material) Resin for 10 % (from 50 to 45)


Old Productivity= 1000/50=20 units per pounds resin
New productivity=1000/45=22.22 units per pounds resin
Productivity difference= 0.22 or 11.1%

Increase in capital invested for 10 % (from 10000 to 11000)


Old Productivity=1000/10000=0.1 units per dollar
New productivity= 1000/11000=0.09 units per dollar
Productivity difference= 0.01 or 11.1%

Decrease in use of energy for 5 % (from 3000 BTU to 2850 BTU)


Old Productivity=1000/3000=0.33 units per BTU
New productivity=1000/2850=0.35 units per BTU
Productivity difference= 0.02 or 0.6%

Prob 1.13

25% increase in demand


How many workers should be added?

Productivity = 2.344 = 1500/labor-hours used


Labor-hour used= 640 hours (considered per month)
It is given that the worker works 160 hours per month then the bakery has
640/160=4 workers,
In order to increase the output by 25%, one more worker should be added:
25% of 4 is =1 or
25% + 1500= 1875 loaves to be produced then 375 loaves to be added
These 375 loaves how many hours they need to be produced?
375/2.344= 160hours (this is the hours spent by one worker per month)
We need just one more worker to perform these 160hours of productivity

Prob 1.14

What to choose: to add one labor or add a blender

a) productivity in loaves per dollar with an increase in labor cost:


With 4 workers: 640 hours and $8 per hour:
Productivity = 1500/5120= 0.29 loaves per dollar
With 5 workers: 800hours and $8/hour:
Productivity=1875/6400= 0.29 loaves per dollar

b) productivity change with only an increase in investment ($100 / month)


Without the increase:
1500/5120=0.29 loaves per dollar
With the increase:
1875/5120+100= 0.359 loaves per dollar

The decision would be better to invest $100 in a blender than to employ a worker

Prob 1.15

I am supposing 1 loaf takes 1 pound of ingredients


For 1500 loaves produced:
Productivity = 1500/500 + 640*8 + 0.35*1500 = 1500/6145=0.244 loaves per
dollar

For 1875 loaves produced:


Productivity = 1875/500 + 800*8 + 0.35*1875= 1875/7556.25=0.248 loaves per
dollar

The increase in productivity is 0.004 or 1.6%

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