MGMT 3020

Assignment #1

MGMT 3020 Fall 2017

Due: Sept. 10, beginning of class

The table below contains production data from two facilities making the identical part.

Plant APlant B
Average 2015 workforce80 workers32 workers
Total 2015 production10,500 units3,840 units
Average 2016 workforce85 workers45 workers
Total 2016 production11,800 units5,859 units

Remember, for this (and for all assignments this quarter), you need to show your work. If you get the correct answer without showing your work, you may receive less than full credit.

a) What is the productivity for each plant in each year?

b) Which plant is more productive in each year?

c) What was the productivity growth rate from 2015 to 2016 for each plant?

d) Assume the growth rates you calculate in part c) continue into the future. For example, if you calculated growth from 2015 to 2016 as 20% for plant A and 15% for plant B, then assume productivity for each plant continues to grow at their respective rates for each subsequent year. In what year (if at all) does the less productive plant surpass the more productive plant (i.e. if this were a race in which the higher productivity plant wins, in what year does the plant which is currently trailing “take the lead”)? Note that I am asking about productivity, not output.