DEPARTMENT OF MECHANICAL ENGINEERING
MEME661: Engineering Process Management
Second Semester 2022 – 2023
13th March 2023
Tutorial 2 - Productivity
1. A company that processes fruits and vegetables is able to produce 400 cases of canned
peaches in half hour with four workers. What is the labour productivity?
2. A wrapping paper company produced 2,000 rolls of paper one day. Standard price is
$1/roll. Labour cost was $ 160, material cost was $ 50, and overhead was $ 320.
Determine the total productivity.
3. Riverside Metal Works produces cast bronze valves on an assembly line. On a recent
day 160 valves were produced during an 8 hour shift. Calculate the labor productivity
of the line.
4. John Lucy makes boxes in which to ship motorcycles. John and his three employees
spend 40 hours per day to make 120 boxes.
a. What is their productivity?
b. John and his employees have discussed redesigning the process to improve
efficiency. If they can increase the rate to 125 boxes per day what is their new
productivity?
c. What would be their increase in productivity?
5.
i.
ii.
iii.
Klean Karpet cleaned 65 rugs in October, consuming the following resources.
Labour
520 hours @$13.00 per hour
Solvent
100 gallons @$5.00 per gallon
Machine rental
20 days @$50.00 per day.
a. What is the total productivity?
b. What is the Labour productivity?
c. What is the solvent productivity?
6. David Upton is the president of Upton Manufacturing, a producer of Go-Kart tyres.
Upton makes 2000 tyres per day with the following resources.
i. Labour 400 hours @$12.50 per hour
ii. Raw material 20,000 pounds per day @$1 per pound
iii. Energy $5,000 per day
iv. Capital depreciation $10,000 per day
a. What is the labour productivity?
b. What is the total productivity?
c. What is the change in total productivity if the electricity bill is cut down by $1000
per day?
7. Collins Little Company has a staff of 4, each working 8 hours per day (for a payroll cost
of $ 640/ day) and overhead expenses of $ 400 / day. Collins processes and closes on
8 titles each day. The company recently purchased a computerized title search system
that will allow the processing of 14 titles per day. Although the staff, their works hours,
and pay will be same, the overheads expenses are now $ 800 per day. Compare the
total productivity before and after the computerized system was introduced.