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Sawyer’s Management Business Ethics

Essay by   •  November 29, 2016  •  Case Study  •  529 Words (3 Pages)  •  1,902 Views

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Name: Student X Due: 8/27/2015

Student Id: Course: MGMT310

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 a 3% increase in productivity. He has the following data representing a month from last year and equivalent month this year:

Last Year

Now

Production (dozen)

1,000

1,000

Labor (hours)

300

275

Resin

50

45

Capital investment ($)

10,000

11,000

Energy (BTU)

3,000

2,850

Labor

Previous Year

(1000 x 12) / 300 = $40 Billiard Balls per labor hour

Current

(1000 x 12) / 275 = $43.636 Billiard Balls per labor hour

Percentage change

(43.636 – 40) / (40 x 100) = 9.09%

Resin

Previous Year

(1000 x 12) / 50 = 240 Balls per Resin hour

Current

(1000 x 12) / 45 = 266.67 balls per resin hour

Percentage Change

(266.67 – 240 ) / (240 x 100) = 11.11%

Capital Investment

Previous Year

(1000 x 12) / 10,000 = 1.20 Balls per capital investment hour

Now

(1000 x 12) / 11,000 = 1.09 Balls per C.I hour

Percentage Change

(1.09 – 1.20) / (1.20 x 100) = -9.17%

Energy

Previous Year

(1000 x 12) / 3000 = 4 balls per BTU

Now

(1000 x 12) / 2850 = 4.21 balls per BTU

Percentage Change

(4.21 – 4) / (4 x 100) = 5.25%

Page Break

1.10)

Sawyer’s, a local bakery, is worried about increased costs--particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Judy Sawyer, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications

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