What is the percentage change in the multifactor labor and raw materials productivity measure

✓ A diagram that shows how a company's strategy is delivered to customers A listing of activities that make up a projectIn development of an operations and supply chain strategy, which of the following may be an importantproduct-specific criteria to consider? Total quality management Focus

 Production lot size Learning curve✓ Supplier after-sale supportVarious financial data for SunPath Manufacturing for 2012 and 2013 follow.PictureWhat is the percentage change in SunPath's total productivity measure between 2012 and 2013?

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Various financial data for SunPath Manufacturing for 2012 and 2013 follow.PictureWhat is the percentage change in the multifactor labor and raw materials productivity measure forSunPath between 2012 and 2013?

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 -2.88The multifactor labor and raw materials productivity measure for 2012 is $300,000 divided by the sum$40,000 + $45,000 or 3.53. For 2013 it is $330,000 divided by the sum $51,000 + $43,000 or 3.51. Thepercentage change between 2012 and 2013, then is (3.511 - 3.529)/3.529 or -0.018 divided by 3.529 =-0.53%.Various financial data for SunPath Manufacturing for 2012 and 2013 follow.Picture

What is the percentage change in the energy partial productivity measure for SunPath between 2012and 2013?

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The energy partial productivity measure for 2012 is $300,000 divided by $10,000 or 30. For 2013 it is

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30)/30 or 6.66 divided by 30 = 22.2%.The total output from a production system in one day is 900 units and the total labor necessary toproduce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting

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Tracking productivity is an important part of managing a business and, while there are a few ways of doing this, multifactor productivity is one of the most common and useful. Labor productivity is also a common method, which is the ratio of production over labor, however, it fails to take into account other factors that affect overall business productivity. A multifactor productivity ratio compares production output over labor, capital and materials.

Labor Productivity Formula

When it comes to productivity, labor can be the most important factor because it can vary considerably from one individual or team to another. The labor productivity ratio is simply the amount of production over amount of labor over the amount of production, or even more simply output over input. The input of labor is normally measured in hours or dollars, while the output of production is usually measured in units. The formula is:

Productivity = Units of Output / Units of Input

For example, if you have five workers each working 40 hours in a week, for a total of 200 hours, and they produced 4,000 units at the end of the week, the productivity would be 4,000/200, or 200 units/hour. If you were paying everyone $10 per hour, the labor productivity could also be measured as 20 units/dollar. You could then follow up in later weeks to see if productivity is increasing, decreasing or remaining constant.

Multifactor Productivity Formula

In the real world, labor is not the only factor that affects productivity. Multifactor productivity goes beyond labor to include other factors, such as capital and materials. These combined factors are added together and placed as a ratio under the units of output. While the formula may look different depending on exactly what units are being used, the basic formula looks like this:

Productivity = Units of Output / Units of Labor + Units of Capital + Units of Materials

Because changes in capital and materials used in the production may also increase or decrease labor costs, this formula will invariably give you a more accurate ratio than using labor alone. If a company hires more workers, or invests in additional training, or replaces workers with robots will be able to see whether or not overall productivity has increased or not, and by what amount.

Examining Multifactor Productivity Models

Most businesses, and the economists who measure productivity across industry sectors, use a multifactor productivity ratio to determine whether or not productivity is increasing or decreasing from one period to another.

Suppose, for example, that you decided to increase output by offering every worker a one dollar bonus for every 100 units produced. At the end of the week, they work the same number of hours, producing 5,000 units instead of 4,000 According to the labor productivity formula, productivity would have increased from 200 units/hour to 250 units/hour, without taking into account the additional $500 you are now paying as a bonus to the employees.

Using a multifactor productivity calculation, you would get a better insight into how the bonus affected overall productivity by adding the $500 bonus to the $2,000 you are paying in wages, giving you:

5,000 units / $2,000 + $500 = 200 units/dollar

In fact, paying the workers the bonus has not improved productivity at all.

Adding the cost of materials will also give you a more accurate insight into productivity. Instead of producing each units from scratch, suppose you were to buy components that were already partially assembled for a slightly increased price. Labor productivity would certainly increase, but only by taking the extra cost of materials into account would you know if the increased materials cost was worthwhile or not.

What is the percentage change in the labor partial productivity measure for sunpass between 2015 and 2016?

Which of the following are multifactor measures of productivity?

Which of the following is the total measure of productivity?