Question 1

Last month Stacy sold 10 houses while working 20 days.This month she sold the same number of houses in 22 days.What is her percent productivity change?
A)10.00%
B)- 9.09%
C)9.09%
D)-10.00%
E)- 4.55%

Accepted Answer

10 / 20 = .5
10 / 22 = .4545
.4545 / .5 = -.9090 or - 9.09%

Question 2

Last month a plant produced 10,000 units using 2000 labor hours.This month it produced 12,000 units using 3000 labor hours.What is the percent productivity decrease?
A)200%
B)100%
C)50%
D)25%
E)20%

Accepted Answer

10000 / 2000 = 5
12000 / 3000 = 4
4 /5 = .8 or 20%

Question 3

A machine shop produces metal frames on two different machines.The average daily production on machine 1 is 300 frames,and the average daily production on machine 2 is 180 frames.What is the daily machine productivity?
A)480 frames/machine
B)330 frames/machine
C)240 frames/machine
D)160 frames/machine
E)300 frames/machine

Accepted Answer

Machine productivity is calculated by adding the average daily production of each machine. Therefore, daily machine productivity = 300 frames/day + 180 frames/day = 480 frames/day. Then, divide the total by the number of machines, which is 2. So, the daily machine productivity is 240 frames/machine. Therefore, the correct answer is C.

Question 4

A firm produces 100 units using 800 labor hours.What is its labor productivity?
A)0.125 units/hour
B)8 units/hour
C)100 units/hour
D)800 units/hour
E)-0.125 units/hour

Accepted Answer

Labor productivity is calculated by dividing the number of units produced by the number of labor hours used. In this case, labor productivity is 100 units / 800 labor hours = 0.125 units/hour. However, this answer is in the wrong format, as it asks for units per hour instead of hours per unit. Therefore, we need to invert the answer to get 8 hours per unit. This means that it takes 8 hours of labor to produce one unit, making answer choice B the correct one.

Question 5

Suppose that weekly output is worth $1000,and labor and materials costs are $300 and $200,respectively.What is the multifactor productivity ratio?
A)1000
B)8
C)2
D)3
E)0.5

Accepted Answer

Multifactor productivity ratio is calculated as follows:

Multifactor Productivity Ratio = Output / (Labor Cost + Material Cost)

In the given scenario, weekly output is worth $1000 and the labor and material cost are $300 and $200 respectively.

Substituting these values in the formula:

Multifactor Productivity Ratio = 1000 / (300 + 200) = 1000 / 500 = 2

Therefore, the multifactor productivity ratio is 2. The answer is C.

Question 6

A bakery bakes bread in two different ovens.Oven 1 can bake a loaf every 30 minutes.Oven 2 can bake a loaf every 15 minutes.What is the average productivity per oven?
A)6.00 loaves/hour
B)3.00 loaves/hour
C)2.67 loaves/hour
D)1.33 loaves/hour
E)0.38 loaves/hour

Accepted Answer

Oven 1 can bake 2 per hour
Oven 2 can bake 4 per hour
Total 6 loaves per hr / 2 ovens = 3 loaves per hour

Question 7

On Tuesday George produced 100 units in 8 hours.On Wednesday he produced 120 units in 10 hours.What was his percent productivity change?
A)-0.50%
B)-4.17%
C)4.17%
D)-4.00%
E)4.00%

Accepted Answer

100 / 8 = 12.5
120 / 10 = 12
12 / 12.5 = .96 or -4%

Question 8

Suppose that in year 1 a company produced $100 Million worth of outputs while inputs totaled $50 Million.For which of the following values in year 2 would productivity decrease?
A)outputs = $90 Million,inputs = $50 Million
B)outputs = $400 Million,inputs = $200 Million
C)outputs = $250 Million,inputs = $100 Million
D)outputs = $50 Million,inputs = $25 Million
E)outputs = $60 Million,inputs = $25 Million

Accepted Answer

Productivity is measured by the ratio of outputs to inputs. In year 1, the productivity was ($100 Million/$50 Million) = 2. If the outputs remain the same in year 2 but inputs increase to $60 Million, the productivity would be ($100 Million/$60 Million) = 1.67, which is less than the productivity in year 1. Therefore, choice A is the only option where productivity would decrease.

Question 9

A manager has just replaced three workers with a machine that is cheaper to operate than the cost of the three replaced workers.Output is expected to remain the same.Which of the following is true?
A)labor productivity will decrease
B)machine productivity will increase
C)multifactor productivity will decrease
D)multifactor productivity will increase
E)the value of output will decrease

Accepted Answer

Multifactor productivity will increase because the same output is now being produced with less labor cost, assuming other factors remain constant. This indicates an improvement in the efficiency of how all inputs (labor, capital, etc.) are used.

Question 10

Vericol,Inc.manufactures drugs using workers and automated machines.The firm has decided to replace two workers with a new machine,while the output per day is not expected to change.Which of the following cannot be true?
A)labor productivity will increase
B)machine productivity will decrease
C)labor productivity will decrease
D)multifactor productivity will increase
E)multifactor productivity will decrease

Accepted Answer

Labor productivity is defined as output per worker, and if the output per day is not expected to change, then labor productivity will remain the same. However, since two workers are being replaced with a machine, the labor input will decrease, so the labor productivity will actually increase. Machine productivity, on the other hand, may decrease or remain the same, depending on the efficiency and reliability of the new machine compared to the previous workers. Multifactor productivity, which takes into account all inputs (including labor and machines), will increase if the output per day remains the same while the labor input decreases. Therefore, the only statement that cannot be true is C: labor productivity will decrease.

Question 11

A firm produces handbags using three workers.On Tuesday,Jane completed 60 bags in 6 hours,Ron completed 50 bags in 7 hours,and Mary completed 80 bags in 5 hours.What was the overall productivity of the firm?
A)7.92 bags/hour
B)11.05 bags/hour
C)10.00 bags/hour
D)10.56 bags/hour
E)61.67 bags/hour

Accepted Answer

We can calculate the overall productivity of the firm by finding the total number of bags produced and dividing by the total number of hours worked:
Total bags produced = 60 + 50 + 80 = 190
Total hours worked = 6 + 7 + 5 = 18
Overall productivity = 190/18 = 10.56 bags/hour. Therefore, the best choice is D.

Question 12

A machine shop produces metal brackets on two different machines.Machine 1 can produce a bracket every 10 minutes.Machine 2 can produce a bracket every 4 minutes.What is the average productivity per machine?
A)4.3 brackets/hour
B)8.6 brackets/hour
C)10.5 brackets/hour
D)21.0 brackets/hour
E)7.0 brackets/hour

Accepted Answer

Machine 1 > 6 [6x10=1 hr]
Machine 2 > 15[4x15=1 hr]
6 + 15 = 21
= 21 / 2
= 10.5 brackets/hr

Question 13

Suppose that in January a company produced 5000 units using 1000 labor hours.For which of the following values in February would labor productivity decrease?
A)units = 5000,hours = 900
B)units = 10,000,hours = 1500
C)units = 10,000,hours = 2000
D)units = 2500,hours = 500
E)units = 5000,hours = 1100

Accepted Answer

Calculate the P= O/I for each; e is the only one less than January. 5000 / 1100 = 4.54

Question 14

Each day a firm produces 50 products worth $40 each.Raw materials cost per unit are $12.The firm uses 4 workers on an eight-hour shift earning $10 per hour each.What is the multifactor productivity ratio?
A)1.82
B)0.77
C)3.16
D)0.12
E)2.17

Accepted Answer

50 x $40 = 2000
600 [12x50] + 320 = 920
2000 / 920 = 2.17

Question 15

Last week Jason painted 11 houses in 4 days.This week he painted 14 houses in 5 days.What was his percent productivity increase?
A)1.82%
B)1.79%
C)27.27%
D)25.00%
E)5.00%

Accepted Answer

11 / 4 = 2.75
14 / 5 = 2.8
2.8 / 2.75 = 1.01818 or 1.82% (remember to move the decimal over)

Question 16

Yesterday,John produced 100 units in 8 hours.Today he produced the same amount in 6 hours.What is his percent productivity change?
A)33.33%
B)0.00%
C)25.55%
D)-25.00%
E)4.67%

Accepted Answer

100 / 8 = 12.5
100 / 6 = 16.666
16.666 / 12.5 = 1.3333 or 33.33%

Question 17

Suppose that output is worth $400,and labor and materials costs are $200 and $100,respectively.What is the materials productivity?
A)2.00
B)1.33
C)0.25
D)0.75
E)4.00

Accepted Answer

400 / 100 = 4.00

Question 18

Suppose that on Thursday a company produced 80 units using 160 labor hours.For which of the following values on Friday would daily labor productivity increase?
A)units = 70,hours = 160
B)units = 80,hours = 180
C)units = 240,hours = 500
D)units = 160,hours = 300
E)units = 40,hours = 100

Accepted Answer

Calculate the P= O/I for each; d is the only one more than Thursday. 160 / 300 = .5333

Question 19

A firm produces 500 units per day using five workers on a five-hour shift.On average,15% of the units produced are defective and must be scrapped.What is the labor productivity for non-defective units?
A)17 units/hour
B)3 units/hour
C)20 units/hour
D)85 units/hour
E)15 units/hour

Accepted Answer

500 per day - 15% or 75 = 425 per day
425 / 5 workers = 85 85 / 5 hr = 17 units / hr

Question 20

If the telecommunication company sold $10,000,000 of internet service using $50,000 of labor,$25,000 of leased bandwidth,$45,000 service fees,and $80,000 or replacement parts,what is the telecommunication multifactor productivity?
A)35
B)40
C)45
D)50
E)55

Accepted Answer

10,000,000 / 50k + 25k + 45k + 80k = 10,000,000 / 200k = 50

Quiz 2: Operations Strategy and Competitiveness

Last month Stacy sold 10 houses while working 20 days.This month she sold the same number of houses in 22 days.What is her percent productivity change?

Last month a plant produced 10,000 units using 2000 labor hours.This month it produced 12,000 units using 3000 labor hours.What is the percent productivity decrease?

A machine shop produces metal frames on two different machines.The average daily production on machine 1 is 300 frames,and the average daily production on machine 2 is 180 frames.What is the daily machine productivity?

A firm produces 100 units using 800 labor hours.What is its labor productivity?

Suppose that weekly output is worth $1000,and labor and materials costs are $300 and $200,respectively.What is the multifactor productivity ratio?

A bakery bakes bread in two different ovens.Oven 1 can bake a loaf every 30 minutes.Oven 2 can bake a loaf every 15 minutes.What is the average productivity per oven?

On Tuesday George produced 100 units in 8 hours.On Wednesday he produced 120 units in 10 hours.What was his percent productivity change?

Suppose that in year 1 a company produced $100 Million worth of outputs while inputs totaled $50 Million.For which of the following values in year 2 would productivity decrease?

A manager has just replaced three workers with a machine that is cheaper to operate than the cost of the three replaced workers.Output is expected to remain the same.Which of the following is true?

Vericol,Inc.manufactures drugs using workers and automated machines.The firm has decided to replace two workers with a new machine,while the output per day is not expected to change.Which of the following cannot be true?

A firm produces handbags using three workers.On Tuesday,Jane completed 60 bags in 6 hours,Ron completed 50 bags in 7 hours,and Mary completed 80 bags in 5 hours.What was the overall productivity of the firm?

A machine shop produces metal brackets on two different machines.Machine 1 can produce a bracket every 10 minutes.Machine 2 can produce a bracket every 4 minutes.What is the average productivity per machine?

Suppose that in January a company produced 5000 units using 1000 labor hours.For which of the following values in February would labor productivity decrease?

Each day a firm produces 50 products worth $40 each.Raw materials cost per unit are $12.The firm uses 4 workers on an eight-hour shift earning $10 per hour each.What is the multifactor productivity ratio?

Last week Jason painted 11 houses in 4 days.This week he painted 14 houses in 5 days.What was his percent productivity increase?

Yesterday,John produced 100 units in 8 hours.Today he produced the same amount in 6 hours.What is his percent productivity change?

Suppose that output is worth $400,and labor and materials costs are $200 and $100,respectively.What is the materials productivity?

Suppose that on Thursday a company produced 80 units using 160 labor hours.For which of the following values on Friday would daily labor productivity increase?

A firm produces 500 units per day using five workers on a five-hour shift.On average,15% of the units produced are defective and must be scrapped.What is the labor productivity for non-defective units?

If the telecommunication company sold $10,000,000 of internet service using $50,000 of labor,$25,000 of leased bandwidth,$45,000 service fees,and $80,000 or replacement parts,what is the telecommunication multifactor productivity?