**Directions:** Read carefully and solve the following problems.

**1.** A company that produces office organizers is currently utilizing 6 hours per day to complete 100 pieces of the product. Engr Didi, the senior process engineer, proposes a minor change in the process flow to avoid redundancy. As a result, the output increased to 129 pieces. The material cost per organizer is BD 3.5; additional supplies needed to complete the organizer cost BD 1.10, labor is paid at the rate of BD 4.5 per hour, energy cost is assumed to be BD 1.0, and water cost is BD 0.75.

- Is there any improvement in productivity with the changes implemented by the process engineer?
- Prove your answer by presenting the labor productivity, multifactor productivity, and productivity improvement.
- What is your conclusion on the action done by Engr Didi?

**2.** Rashed and Company has completed 100,890 pieces of item Y for submission to Quality Assurance. These units have been completed by 15 operators who worked from 8 a.m. to 5 p.m., with a break of an hour and a half for 2 weeks (10 days). However, after a rigorous inspection, only 98,500 have passed the quality criteria. Find the productivity.

**3.** Kanoo Company, a fruit packaging company, currently performs manual packaging. The company has the following resources: 12 staff members, each working from 8 a.m. to 5 p.m. with a break of 75 minutes, a payroll cost of BD 2400, a material cost of BD 800, and overhead expenses of BD 1400. The company processes 120 fruit packs each day. Recently, the company purchased an automatic packaging machine that allows processing 480 fruit packs per day. With this equipment, the number of staff has been cut in half, while the working hours are maintained, and the labor cost is reduced by half. The overhead expenses have increased by 25% compared to the previous ones. Material requirements have become more efficient, reducing the cost by 15%.

- Compute the labor productivity and multifactor productivity for both the old and new systems.