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Wood Dreams makes hand crafted furniture 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 130 pieces of furniture per day from the previous 47 pieces of furniture per day. The number of defective items per day has dropped from 5 to 2 per day. The production facility operates strictly 8 hours per day. 5 people work daily in the plant. What is the change in productivity of non-defective units for Wood Dreams using the new process? Round to 2 decimal places with NO %.

Answer :

Answer: 204.76%

Explanation:

In the earlier scenario, furniture maker manufactured 47 (42 non defective) pieces per 5 laborers working 8 hours day.

Thus, the productivity in terms of units per labor hour is as follows:

[tex]= \frac{42}{8\times5}[/tex]

= 1.05

Similarly, after the process improvement, the productivity in units per labor hour would be:

[tex]= \frac{128}{8\times5}[/tex]

= 3.2

Thus change in productivity would be calculated as:

[tex]=\frac{3.2-1.05}{1.05}\times100[/tex]

= 2.047 × 100

= 204.76%

Thus, the productivity of non defective parts would increase by 204.76%.

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