Comparing Productivity You have multiple facilities that produce the same basic line of products. Each facility has their own unique objectives. For example, Facility A produces a narrow range of products in high volumes and Facility B produces a wide range of lower volume, customized alternatives. Data for the two facilities is provided in the table below:
1) Your goal is to increase Labor Hour Productivity for Facility A by 10.0 %. What new level of Annual Labor Hours would be required to achieve the goal if Units/Year remains unchanged? Do not round intermediate values in your calculation. Round your final answer to two (2) decimal places.
2) Your goal for Facility B is to increase Labor Hour Productivity by 6.1 %. Assuming that Annual Labor Hours remains constant next year, what would be the resulting units produced?
3) Facility A has $ 5.5 million of capital equipment. Determine the capital productivity based on their output per year.
4) Facility A products sell for an average of $ 10.12 per unit while Facility B products, being fully customized, sell for $ 25.81 per unit. Average labor cost per hour in Facility A is $ 17.04 and in Facility it is $ 26.02. Report the productivity for the facility with the highest productivity based on output in $s and labor cost.
5) Corporate is concerned with the overall combined labor hour productivity for the product line. Their objective is to obtain a combined labor hour productivity greater than 75. Report the Labor Hour Productivity combined for the two facilities.
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