Question

1. Explain and justify how productivity can be measured.

                                                                                           10 Marks

2. AIT has a staff of 4 cleaners, each working 8 hours per day (for a payroll cost of GH¢ 640/ day) and overhead expenses of GH¢ 400 / day. The cleaners mop and clean 8 floors each day. The company recently purchased a new machine system that will mop and cleans 14 floors per day. Although the cleaners, their works hours, and pay will be same, the overheads expenses are now GH¢ 800 per day. Compute the following;

1. labour productivity with the old system.
2. labour productivity with the new system:
3. multifactor productivity with the old system:
4. multifactor productivity with the new system:

Answer 1

Answer a= In order to measure productivity, we have to use the following formula=

Productivity= Total output/total input

Productivity is an indication of how well the person or resources are used to produce a certain number of outputs.

Answer a=

i= labor productivity with the old system =8/4=2 floors/cleaner

ii=labour productivity with the new system =14/4=3.5 floors/cleaner

iii= multifactor productivity with the old system=8/(4*640+400)=0.0027

iv= multifactor productivity with the new system: =14/(4*640+800)=0.0042