Question

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his​ costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a​ 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this​ year:

                                                                                                         

	Last Year	Now	Cost Per Input Unit
Units Produced	1 comma 2001,200	1 comma 2001,200
Labor​ (hours)	280280	255255	​$1212 per hour
Resin​ (pounds)	4848	4343	​$66 per pound
Capital Invested​ ($)	10 comma 00010,000	11 comma 00011,000	22​% per month
Energy​ (BTU)	2 comma 9002,900	2 comma 7502,750	​$0.600.60 per BTU

The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator​ =

nothing​%

​(enter your response as a percentage rounded to two decimal​ places).

Answer 1

Based on the given data, we find the Multifactor Productivity for Lat year and Now as shown below:

Multifactor productivity last year = 0.3046 units / $

Multifactor productivity now = 0.2948 units / $

Change in productivity = (0.6417 - 0.6186) / 0.6186 = 3.73%

Answer: The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = 3.73%

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