Question

Jody has just begun a new job with a production company. He will work 40- hour weeks and each month various measures of his performance are checked. In his first month (4 weeks) Jody produced 500 units; in his second month (5 weeks) he produced 725 units. Calculate Jody’s productivity for each month and indicate whether his productivity has grown or declined.

Answer 1

Labour productivity is calculated by dividing the number of units produced by the total hours put in by the employee.

For first month

Weekly hours= 40

Total hours put in first month= 4 weeks ×40 hours

Total hours =160 hours

No of units produced =500 units

So, labour productivity = 500/160 = 3.125

So, Jody produced 3.125 units per hour in first month.

For second month:

Weekly hours=40

No. Of weeks= 5

Therefore, total hours = 40×5 = 200 hours

No. Of units produced= 725 units

So, labour productivity for second month= 725/200= 3.625 units per hours

Thus, jody preached 3.625 units per hour in second month.

Thus, Jody's productivity has increased from 3.125 in the first month to 3.625 per month, that is 16% increase.

% increase = (3.625-3.125)/3.125 ×100

=0.5/3.125 ×100

=0.16 ×100

=16% increase