Directions: Read carefully and solve the following problems.


1. The company that produces office organizers is currently using 6 hours per day to complete 100 pieces of the product. Engineer Didi, Senior Process Engineer, suggests making a slight change to the process flow to avoid redundancy. By doing this, the output increased to 129 pieces. Material cost per organizer is 3.5 BD; Additional supplies needed to complete the regulator cost BHD 1.10 and labor is paid at a rate of BHD 4.5 per hour, the energy cost is assumed to be BHD 1.0 while the water cost is BHD 0.75.

1. Is there any improvement in productivity with the changes implemented by the process engineer?

2. Prove your answer by introducing labor productivity, multifactor productivity, and productivity improvement.

3. What is your conclusion about the procedure that Eng. Didi performed?


2. Rashid & Co. has completed 100,890 items of Item Y for submission to Quality Assurance. These units were completed by 15 workers who worked from 8 a.m. to 5 p.m., with a break of 1.5 hours for two weeks (10 days). However, after strict examination, only 98,500 passed the quality standards. Look for productivity.


3. Kanoo Company, a fruit packing company that does manual packing. At the moment, it has the following resources: 12 employees each working from 8 am to 5 pm with a 75 minute break at a salary cost of BHD 2,400, a material cost of BHD 800 and overhead of BHD 1,400. The company process 120 fruit packs every day. The company recently purchased an automatic packing machine that allows processing 480 packages of fruits per day. With the purchase of this equipment, the number of employees was halved while working hours were preserved and the labor cost was reduced by half. Overhead expenses are now increased by 25% compared to previous expenses. Material requirements become more efficient and cost is reduced by 15%. Calculation of labor productivity and MF for both old and new system