1. Ilhan's, a local bakery, is worried about increased costs - particularly energy. Last year's records can provide a fairly good estimate of the parameters for this year. Ilhan Balci, the owner, does not believe things have changed much, but he did invest an additional 3 000 MU for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15 % more efficient. I. Balci has asked you, as a brilliant graduate of EMU, to check the energy savings of the new ovens and also look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with:
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|
Last Year
|
Now
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|
Production (dozen)
|
1500
|
1500
|
|
Labour (hours)
|
350
|
325
|
|
Capital Investment (MU)
|
15 000
|
18 000
|
|
Energy (kw-hrs)
|
3 000
|
2 750
|
2. Serra's Ceramics spent 3 000 MU on a new kiln last year, in the belief that it would cut energy usage 25 % over the old kiln. This kiln is an oven that turns "greenware" into finished pottery. Serra is concerned that the new kiln requires extra labour hours for its operation. Serra wants to check the energy saving of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial.
Serra has the following data to work with:
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|
Last Year
|
This Year
|
|
Production (finished units)
|
4000
|
4000
|
|
|
|
|
|
Greenware (pounds)
|
5000
|
5000
|
|
Labour (hrs)
|
350
|
375
|
|
|
|
|
|
Capital (MU)
|
15000
|
18000
|
|
Energy (kWh)
|
3000
|
2600
|
|
|
|
|
Were the modifications BENEFICIAL?
3. Haldun LOP, the production manager of LOP Chemicals, in Gazimagusa, TRNC, is preparing his quarterly report which is to include a productivity analysis for his department. One of the inputs is production data prepared by Meltem SERIN, his operation analyst. The report, which she gave him this morning, showed the following:
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|
2005
|
2006
|
|
Production (units)
|
4500
|
6000
|
|
Raw Material Used (barrels ofPetroleum by-
|
|
|
|
products)
|
700
|
900
|
|
Labour Hours
|
22000
|
28000
|
|
Capital Cost applied to the Department (MU)
|
375000
|
620000
|
Haldun LOP wondered if his productivity had increased at all. He called Meltem into his office and conveyed the above information to her and asked her to proceed with preparing this part of the report. (Include your interpretations for each productivity figure).