Problem - Profile Productivity Measurement Objective
In 2015, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company's productivity:
2014 2015
Number of units produced 600,000 480,000
Labor hours used 120,000 80,000
Materials used (lbs.) 1,500,000 1,066,667
Required:
1. Calculate the productivity profile for 2014. If required, round your answers to two decimal places.
Partial Operational Productivity Ratios2014 Profile
Labor productivity ratio: _______
Material productivity ratio: _______
2. Calculate the productivity profile for 2015. If required, round your answers to two decimal places.
Partial Operational Productivity Ratios2015 Profile
Labor productivity ratio: _____
Material productivity ratio: _____
3. What if the labor hours used in 2015 were 117,500? What does comparison of the 2014 and 2015 profiles now communicate? If required, round your answers to two decimal places.
Partial Operational Productivity Ratios2014 Profile2015 Profile
Labor productivity ratio: ______
Material productivity ratio: _______