Riverside Metal Works produces cast bronze valves on a 10-person assembly line. On a recent day 160 valves were produced during an 8-hour shift.
A) Calculate the labor productivity of the line.
B) The operations manager was able to change the layout and increase production to 180 units per 8-hour shift. What is the new labor productivity per labor hour?
C) What is the percentage of productivity increase?
Boreki Enterprise has the following 10 items in inventory. CEO Theodore Boreki asks you to divide these items into an ABC classification:
Item Annual Demand Cost/Unit
A2 3000 $50
B8 4000 $12
C7 1500 $45
D1 6000 $10
E9 1000 $20
F3 500 $500
G2 300 $1500
H2 600 $20
I5 1750 $10
J8 2500 $5
A) Develop an ABC classification system for the 10 items.
B) How can Boreki use this information?
C) Boreki reviews the classification and then places item A2 into the A category. Why might he do so?