Questions: George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. 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. 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 / 260 - Resin (pounds): 60 / 46 - Capital Invested (): 9,000 / 12,000 - Energy (BTU): 3,000 / 2,500 The productivity change for each of the inputs (Labor, Resin, Capital, and Energy) is: Labor Productivity Change = 15.38% (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). Resin Productivity Change = % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).

Solution Steps

To determine the productivity change for labor, we first calculate the labor productivity for both years using the formula:

\[ \text{Labor Productivity} = \frac{\text{Units Produced}}{\text{Labor (hours)}} \]

For last year:

\[ \text{Labor Productivity}_{\text{last year}} = \frac{1000}{300} = \frac{10}{3} \text{ units per hour} \]

For now:

\[ \text{Labor Productivity}_{\text{now}} = \frac{1000}{260} \approx 3.846 \text{ units per hour} \]

Next, we calculate the productivity change:

\[ \text{Labor Productivity Change} = \left( \frac{\text{Labor Productivity}_{\text{now}} - \text{Labor Productivity}_{\text{last year}}}{\text{Labor Productivity}_{\text{last year}}} \right) \times 100 \]

Substituting the values:

\[ \text{Labor Productivity Change} = \left( \frac{3.846 - \frac{10}{3}}{\frac{10}{3}} \right) \times 100 \approx 15.38\% \]

Next, we calculate the productivity for resin using the same formula:

\[ \text{Resin Productivity} = \frac{\text{Units Produced}}{\text{Resin (pounds)}} \]

For last year:

\[ \text{Resin Productivity}_{\text{last year}} = \frac{1000}{60} \approx 16.67 \text{ units per pound} \]

For now:

\[ \text{Resin Productivity}_{\text{now}} = \frac{1000}{46} \approx 21.74 \text{ units per pound} \]

Now, we calculate the productivity change for resin:

\[ \text{Resin Productivity Change} = \left( \frac{\text{Resin Productivity}_{\text{now}} - \text{Resin Productivity}_{\text{last year}}}{\text{Resin Productivity}_{\text{last year}}} \right) \times 100 \]

Substituting the values:

\[ \text{Resin Productivity Change} = \left( \frac{21.74 - 16.67}{16.67} \right) \times 100 \approx 30.43\% \]

Final Answer