George Kyparisis makes bowling balls in his Miami plant
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in inefficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity per year. He has the following data representing yearly equivalent production.
YEAR: 2012
YEAR: 2013
Units Produced
2,000
3,000
Labor (hours)
300
275
Resin (Pounds)
50
45
Capital Invested ($)
10,000
11,000
Energy (BTU)
3,000
2,850
- Show the changes in productivity in each of the inputs between 2012 & 2013 and then determine the productivity percentage change for each category.
Quantity
YEAR; 2012
YEAR; 2013
Units Produced
2,000
3,000
Labor (hours)
Resin (Pounds)
Capital Invested ($)
Energy (BTU) (16points)
- George Kyparisis (using the data from the table in problem #1 above) determines his 2012 and 2013 costs to be as follows: •
-Labor: $ 10 per hour
– Resin: $ 5 per pound
– Capital expense: 5% of investment
– Energy: $.50 per (BTU)
2012
2013
Production
2,000
3,000
Labor @$10/hr.
Resin@$5
Capital cost @ 5%
Energy @ $.50
-Show the percent change in productivity between 2012 and 2013, on a multifactor basis with dollars as the common denominator. (20points)
