Question

A work group of 10 workers in a certain month produced 7200 units of output working 8 hr/day for 22 days in the month. Determine the labor productivity ratio using:
Units of output per worker-hour and per worker-month.
For each of these, determine the productivity index for the next month using the prior month as a base. Then, suppose that in the next month, the same work group produced 6800 units but, there were only 20 workdays in the month.

Answer 1

Answer:

The answer is below

Explanation:

Given that unit of output is 7200,

Working hours/day = 8hrs

Working days/month = 22 days

Hence,

a.  units of output per worker-hour

=> LPR = 7200 ÷ (10 * 8 * 22)

=> 7200 ÷ 1760 = 4.091 units/wo-hr

b. units of output per worker-month

=> LPR = 7200 ÷ (10 * 1) = 720 units/wo-month

c. determine the productivity index for the next month using the prior month as a base.

Supposing that unit of output is 6800,

Working hours/day = 8hrs

Working days/month = 20 days

LPR = 6800 ÷ ( 10*8*20) =

=> 6800 ÷ 1600 = 4.25 units/wo-hr

Hence, LPI for (a) = 4.25 ÷ 4.091 = 1.039 = 103.9%

LPR = 6800 / (10*1) = 680 units/wo-month

Hence, LPI for (b) = 680 / 720 = 0.944 = 94.4%