SOLUTION: Teradyne Connection Systems makes “backplanes” (large printed circuit-board assemblies) for communication and storages devices. Recently, the company converted its production p

Question 1151703: Teradyne Connection Systems makes “backplanes” (large printed circuit-board assemblies) for communication and storages devices. Recently, the company converted its production process from batch into assembly line. It also used computers to assist the workers at workstations. As a result, productivity has shot up. The site manager, Mark Galvin, says: “Operators made 300 backplanes in seven days using three shifts by the batch process (i.e., 7 days, 24 hours a day). Later, they assembled 500 backplanes in five days using just two shifts with the new assembly-line approach (i.e., 5 days, 16 hours a day).” Assuming that the same number of workers worked during each shift, and before and after the conversion, what is the percentage growth in labour productivity? (Do not round intermediate calculations. Round the final answer to the nearest whole number.)

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
with the batch process, they made 300 backplanes in seven days using 3 shifts (24 hours a day).
7 * 24 = 168 hours of labor to make 300 backplanes.
backplanes per hour = 300 / 168.

with the assembly line process, they made 500 backplanes in five days using 2 shifts (16 hours a day).
5 * 16 = 80 hours of labor to make 500 backplanes.
backplanes per hour = 500 / 80.

if you measure productivity in terms of backplanes per hour, then the assembly line process was (500 / 80) / (300 / 168) = 3.5 times AS productive as the batch process.

subtract 1 from that and you get 2.5 times MORE productive than the batch process.
the formula for that would be:
((500 / 80) - (300 / 168)) / (300 / 168) = 2.5 times more productive.

the percentage growth in labor productivity would therefore be 250%.
that's your solution.

the increase was from 300 / 168 = 1.78514286 backplanes per hour to 500 / 80 = 6.25 backplanes per hour.
that's an increase of 6.25 - 1.78514286 = 4.464275614 backplanes per hour.
4.464275614 / 1.78514286 = an increase of 2.5 times the number of backplanes per hour more than the batch process.
2.5 * 100 = 250%.

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