A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity decreases by 20% due to a process change, it would then be:
A) 14.4 covers/hr.
B) 9.6 covers/hr.
C) 144 covers/hr.
D) 96 covers/hr.
E) 11.8 covers/hr.

Question

Quizplus · Accepted Answer

Labor productivity is the amount of output produced per unit of labor input. If the productivity decreases by 20%, that means the output produced will decrease by 20% as well.

Currently, 120 covers are produced in a 10-hour shift, which means the hourly production rate is 12 covers/hr (120/10 = 12).

If the productivity decreases by 20%, the new hourly production rate will be:
12 x 0.8 = 9.6 covers/hr

Therefore, the best choice is B.

A Foundry Produces Circular Utility Access Hatches (Manhole Covers)