Question

PLEASE ANSWER IN 30 MINUTES

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 20 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 14 minutes. In this case, what is the output that should be used for productivity calculations? 1 pair (of customized inserts) 20 minutes 14 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

Ans –

1. After training of new process ,14 minutes time should be calculated for Productivity calculation.

2. Pairs inserts could an average employee complete in hours with new process: -

           Cycle time = 14 min.

           One-hour productivity = 60 min/ 14 min.

                                            = 4.29 pairs.

3. Percentage productivity increase=

                   Productivity/ hour with old process= 60/20= 3 pairs

                   Productivity / hours with New process = 60/14 = 4.29 pairs.

                   Increase in productivity = 4.29 – 3 = 1.29 pairs

              That’s increase productivity on percentage = 1.29 / 3 *100

                                                                                       = 43% productivity increase.