Labor productivity of the line
= Number of Valves produced during the shift /( Number of persons in assembly line x Number of hours in a shift )
= 180 / ( 15x 4)
= 3 Valves/ hour
|LABOR PRODUCTIVITY OF THE LINE = 3 VALVES PER LABOR HOUR|
Revised labor productivity when quantity produced is 220 units
= 220/ ( 15 x 4)
= 3.666 valves/ hour
Percentage of productivity increase
= ( New productivity – Old productivity ) / Old productivity x 100
= ( 3.666 – 3 ) / 3 x 100
= 22.2 %
|THE PERCENTAGE OF PRODUCTIVITY INCREASE = 22.2 %|
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