Exercises On Productivity
Exercises On Productivity
Exercises On Productivity
Exercise 1
Laundry Service has recorded throughout 5 weeks the number of hours worked per week, number of workers and
actual output received per week.
Question:
1. Calculate labor productivity and analyze the process
Exercise 2
A firm produces 1500 units per day using four workers on a five-hour shift. On average, 12% of the units produced
are defective and must be scrapped.
Question:
What is the labor productivity for non-defective units?
Exercise 3
The health clinic expanded and it has 6 employees now. Each of them works 35 hours per week. It has also leased
some new health monitoring equipment which allows patients to be processed faster. This means that the total
output is now 280 patients per week. Its wage costs have increased to 4,680 $ per week and its overhead expenses to
3,000$ per week. What are its single-factor labour productivity and multi-factor productivity?
Exercise 4
A publishing company plans to replace its four proofreaders who look for errors in manuscripts with a new scanning
machine and one proofreader in case the machine breaks down. Currently the proofreaders check 15 manuscripts
every week in total. Each is paid 80,000$ per year. Hiring the new scanning machine will cost 5,000$ each calendar
month, but it could check 50 manuscripts per week. How will this new system affect the proofreading department’s
productivity?
Exercise 5
A health check clinic has 6 employees and processes 280 patients per week. Each employee works 35 hours per
week. The clinic’s total wage bill is $4,680 and its total overhead expenses are $3,000 per week. What is the clinic’s
single-factor labor productivity and its multi-factor productivity?
Exercise 6
Two car wash employees are paid $7.50 an hour each and are capable of washing 12 cars per hour, using $1 of water
and $2 of soap and other cleaning supplies. What is the multi-factor productivity of this operation?
Exercise 7
Three employees process 600 insurance policies in a week. They work 8 hours per day, 5 days a week. What is the
labor productivity per hour?