In: Operations Management
A company wants to calculate some metrics for benchmarking
purposes. Use the table below to calculate the single factor
productivity for Equipment, Material, Human Capital, and Energy. As
well, calculate the total factor productivity. Do the calculations
for both the Company and the Competitor. Show all of your work in
the space below; correct by unsupported answers will be assigned a
score of zero. Provide a verbal conclusion of your
findings.
COMPANY [$1000s] | COMPETITOR [$1000s] | |
Equipment | 70,000 | 85,000 |
Material | 130,000 | 165,000 |
Human Capital | 13,000 | 18,000 |
Energy | 4,300 | 9,100 |
Sales | 650,000 | 720,000 |
Conclusion:
The company is doing well and it's productivity is higher than the competitor. It's using the Inputs in a more efficient way as compared with the competitor's utilisation. It can be noted that, single factor productivity and also multi factor productivity both are higher than that of its competitors.
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