Eric Johnson - billiard balls
For the problem below, please show the productivity change for each category and then determine the improvement for labor-hours, the typical standard for comparison.
Eric Johnson makes billiard balls in his New England Plant. With recent increases in his costs, he has a new- found interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year:
Last Year Now
Units produced 1,000 1,000
Labor (hours) 300 275
Resin (pounds) 50 45
Capital Invested ($) 10,000 11,000
Energy (BTU) 3,000 2,850