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For the problem below, please show the productivity change for each category and then determine the improvement for labor-hours, the typical standard for comparison.

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Eric Johnson makes billiard balls in his New England Plant. With recent increases in his costs, he has a new- found interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year:

Last Year Now
Units produced 1,000 1,000
Labor (hours) 300 275
Resin (pounds) 50 45
Capital Invested ($) 10,000 11,000
Energy (BTU) 3,000 2,850

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Solution Summary

The expert examines Eric Johnson billiard balls.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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