PRODUCTION MANAGEMENT
Topic: Review
Question
For:
Questions and answers email: theotherwomaninmarriage@gmail.com
Note: It is a good thing to cram formulas and steps:
THE PROBLEM:
Ask
Ralph Blog Spot, a noted blogger and a producer of apple pies sold to
supermarket has been able with its current equipment to produce 24 pies per
bushel of apples. It currently purchases
100 bushels per day and each bushel requires
3 man hours to process. It believes that
it can hire a professional food broker who can buy a better quality apple at
the same cost. If this is the case, he
can increase its production to 26 pie per bushel. Its labour hours will increase.
What
will be the impact on productivity?
THE SOLUTION:
Here
is the formula:
Productivity
= Output
Input
Current Production (C/P) = 24
pies x 100 bushels
3hours x 100 bushels
= 2,400
300 = 8 per pie, per man hour
When
it now hired a food broker;
It
will now be;
Productivity
= Output
Input
26 pies x 100 bushels
100 bushels x 3hours + 8 hours
2,600 2,600
300
+ 8 = 308 = 8.44
8.44 per pie, per man
hour
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