1.6 Eric Johnson makes billiard balls in his New England plant. With recent

1.6 Eric Johnson makes billiard balls in his New England

plant. With recent increases in his costs he has a newfound 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:

Show the productivity percentage change for each category and

then determine the improvement for labor-hours the typical standard

for comparison. PX

%u2022 %u2022 1.7 Eric Johnson (using data from Problem 1.6) determines

his costs to be as follows:

%u2022 Labor: $10 per hour

%u2022 Resin: $5 per pound

%u2022 Capital expense: 1% per month of investment

%u2022 Energy: $.50 per BTU.

Show the percent change in productivity for one month last year

versus one month this year on a multifactor basis with dollars as the

common denominator. PX

Last Year Now

Units produced 1000 1000

Labor (hours) 300 275

Resin (pounds) 50 45

Capital invested ($) 10000 11000

Energy (BTU) 3000 2850

*Note: PXmeans the problem may be solved with POM for Windows

and/or Excel OM.