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(DSIOPMA) Problem Solving No. 1 - Ganzan

The document analyzes productivity across different scenarios, highlighting factors that influence productivity such as worker experience, meal complexity, and service style. It presents data showing that crew size does not directly correlate with productivity and discusses the impact of new equipment on productivity metrics. Overall, it emphasizes the importance of multifactor productivity over labor productivity for assessing economic benefits.

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irishganzan
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23 views2 pages

(DSIOPMA) Problem Solving No. 1 - Ganzan

The document analyzes productivity across different scenarios, highlighting factors that influence productivity such as worker experience, meal complexity, and service style. It presents data showing that crew size does not directly correlate with productivity and discusses the impact of new equipment on productivity metrics. Overall, it emphasizes the importance of multifactor productivity over labor productivity for assessing economic benefits.

Uploaded by

irishganzan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Irish Mhae P.

Ganzan
DSIOPMA K82
Problem Solving No. 1

1.​ A. 300/8 = 37.50 240/6 = 40


Final answer: Using the formula, the productivity the week before is 40 which is higher
than last week’s 37.50

B. A possible factor which caused such differences could be the experience of the
workers. It can be inferred that the 6 workers who performed the week before are more
experienced than last week's 8 workers resulting in their productivity to be higher despite
being outnumbered. Another reason could be that the meals for the anniversary
celebration are more complicated to prepare compared to the meals for the wedding.
The quality of the equipment used is also another factor. Maybe the equipment setup
during the wedding was more efficient as opposed to the one used for the anniversary
celebration.

The productivity differences may also have been influenced by the style of service
implemented during the different events. It is possible that it was a buffet in the wedding
and plated in the anniversary celebration making more meals served during the former. It
can also be hypothesized that the wedding had better-coordinated serving times which
made it possible for the workers to perform better.

2.​
Week Crew Size Yards Installed Productivity

1 4 96 96/4 = 24

2 3 72 72/3 = 24

3 4 92 92/4 = 23

4 2 50 50/2 = 25

5 3 69 69/3 = 23

6 2 52 52/2 = 26

Scrutinizing the data above, I conclude that crew size is not directly proportional to
productivity. As can be seen, during the 6th week, although there were only 2 workers,
the labor productivity was the highest albeit more workers performed during the other
weeks.

3.​
Week Output Direct Labor Direct Overhead Productivity
Material

1 30,000 2,880 2,700 4,320 3.03

2 33,600 3,360 2,820 5,040 2.99

3 32, 200 3,360 2,760 5,040 2.89

4 35, 400 3,840 2,880 5,760 2.84

As can be seen, productivity is declining from the 1st week to the 4th week although the
number of total output increased to the faster rate of increase in inputs. With that said,
adding more workers does not necessarily mean that productivity will increase as well.

4.​ Before
Labor cost: 5 workers * $10 = $50
Machine cost: $40
Outputs: 80 carts

After
Labor cost: 4 workers * $10 = $40
Machine cost: $50
Outputs: 84 carts

A.​ Before: 80/5 = 16


After: 84/4 = 21

B.​ Before: 80/50 + 40 = 0.89


After: 84/40 + 50 = 0.93

C.​ Using the two measures, it shows that the purchase of new equipment increases
productivity. According to the labor productivity, it increased from 16 to 21 carts
which means that there was an increase of 31.25%. On the other hand, the
multifactor productivity manifests a 4.49% caused by having 0.89 to 0.93 carts.

In this situation, the multifactor productivity is more relevant as it takes into


consideration the labor and equipment costs. Despite the fact that labor
productivity shows a more attractive increase, it excludes the machine cost.
However, with the multifactor productivity, the overall efficiency gain is computed
which better manifests the real economic benefit to the firm.

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