MJMPM Graphite, Inc produces carbon graphite fiber shafts for Calloway golf clubs. Last year their average monthly production included 19,000 shafts using 1 shift of 3 technicians working 20 days a month and 8 hours a day. Of the items produced, 15% were deemed defective and were scrapped due to poor tensil strength of the graphite shaft.
Recently, MJMPM Graphite, Inc took your recommendations to revise the process by reorientating the fiber layup prior to the production method. Your process requires an additional technican working 20 days a month on an 8 hour shift to to monitor the orientation of the fibers as they are compacted on a mandril to evaluate the resistance to torsion. As a result, monthly production has increased to 24,000 units with defects reduced to 9%.
a. Compute the productivity ratios for the old and the new production systems.
b. You have to report to the Operations Manager on the impact to productivity of your new process. What will you report?