1) Four workers installed 720 square meters of carpet in eight hours.
What is the productivity? (Partial Measure)
720/(4*8) = 22.5 mt2 / worker / hour
2) A manufacturer produces 2,040 units. The input costs for this production are:
Labor and staff: $1,000
Materials: $520
Machine overhead: $2,000
What is the productivity?
2040/(1000+520+2000) = 0.579 units / $
3) A pottery manufacturer that sells to flower shops and department stores had the following output and costs during
the last three weeks. Average labor cost is $10 per hour during regular time (first 40 hours of a week) and $15 per
hour during overtime (any hours in excess of 40 hours a week), and pottery clay cost was $2/kg. Calculate the multifactor productivity for each week and comment on the results. What is the productivity growth?
Week
1
2
Units produced
1,000
1,500
No of worker
2
2
Hours/week/worker
40
60
Material (Kg)
150
250
1000
𝑾𝒆𝒆𝒌 𝟏 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 = (2×40×10)+(150×2) = 0.91𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 $
1500
𝑾𝒆𝒆𝒌 𝟐 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 = (2×40×10)+(2×20×15)+(250×2) = 0.79𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 $
Pp = Previous productivity = Week 1 Productivity
Cp = Current productivity = Week 2 Productivity
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝐺𝑟𝑜𝑤𝑡ℎ =
𝐶𝑝−𝑃𝑝
0.79−0.91
−0.12
= 0.91 = 0.91 = −0.1319
𝑃𝑝
𝑂𝑅 − 13.19%