Question

PC.52 At the start of the semester Custom Kicks personnel were struggling to quickly customize their shoe inserts to their customers' feet. This hurt sales as customers became frustrated during the customization process and would hesitate to refer friends.

During week three of running the business, it took an average employee about 25 minutes to customize one pair of inserts. Recognizing this challenge, management and key employees analyzed the customization process and made some time-saving changes. Two weeks later, after training all employees on the new process, an average employee could customize a pair of inserts in about 18 minutes.

In this case, what is the output that should be used for productivity calculations?

		1 pair (of customized inserts)
		18 minutes
		25 minutes

After making the time-saving changes mentioned above, how many pair of inserts could an average employee complete in one hour? (Display your answer to two decimal places.)

   

After making the time-saving changes mentioned above, by what percentage did Custom Kicks' productivity increase? (Write your answer as a percentage, and display your answer to two decimal places.)
   %

Answer 1

The formula for productivity calculations is

=Total output / Total input.

Output is no of goods generated

Input is no of hours used by the employees to generate the product

1. Output used for productivity calculations is 1 pair (of customized inserts)

This is as per formula of productivity calculations explained above.

The rest options are showing inputs, so wrong

2. An average employee can complete 3.33 pairs in an hour (60mins)

If an employee can complete 1 pair of customized shoes in 18 mins, then in 60mins calculations are:

60*1/18= 3.3333333333 = 3.33 (Rounding to two decimal places)

3. Custom kicks productivity is increased by 38.75%

Calculations:

Before time saving changes, Custom Kicks can make 2.4 pairs in 60mins, taking 25 mins for each pair

=60*1/25= 2.4pairs

After time saving changes, Custom Kicks can make 3.33 pairs in 60mins, taking 18 mins for each pair

=60*1/18=3.33 pairs

Increase= New number- original number

=3.33-2.4=0.93 pairs

Divide the increase by original number= 0.93/2.4= 0.3875

% increase= increase/original number*100

=0.3875*100=38.75%

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