Question

Butters Furnishings makes hand crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new system, production has increased to 70 pieces of furniture per day from the previous 60 pieces of furniture per day. The number of defective items produced has dropped from 10 pieces per day to 4 per day. The production facility operates strictly 7 hours per day. Five people work daily in the plant. What is the growth rate in productivity for Aztec using the new assembly process?

Answer 1

Answer:

0.320

Explanation:

Productivity is measured as the total output divided by total input.

From the given information, the output is taken into consideration when we finish subtracting the defective materials.

The labor hours usually regarded as the input = 7 hours per day × 5 = 35

For the prior productivity, we have:

$\mathbf{Prior \ Productivity = \dfrac{60 - 10}{35}}$

$\mathbf{Prior \ Productivity = \dfrac{50}{35}}$

$\mathbf{Prior \ Productivity = 1.43}$

For the current productivity:

$\mathbf{current \ productivity= \dfrac{70-4}{35}}$

$\mathbf{current \ productivity= \dfrac{66}{35}}$

$\mathbf{current \ productivity= 1.89}$

Thus, the growth rate i.e. the increased change in  productivity is:

$= \dfrac{1.89 - 1.43}{1.43}$

= 0.320