Question

PC.52 At the start of the semester Custom Kicks personnel were struggling to quickly cstomize their shoe inserts to their customers' feet. This hurt sales as customers became frustrated during the customization process and would hesitate to refer friends.

Durint week three of running the business, it took an average employee about 18 minutes to customize one pair of inserts. Recognizing this challenge, management and key employees analyzed the customization process and made some time-saving changes. Two weeks later, after training all employees on teh new process, an average employee could customize a pair of inserts in about 14 minutes.

In this case, what is the output that should be used for productivity calculations?

1. 1 pair

2. 14 minutes

3. 18 minutes

After making the time-saving changes mentioned above, how many pair of inserts could an average employee complete in one hour? (Display answer to two decimal places.)

After making the time saving changes mentioned avoce, by what percentage did Custom Kicks' productivity increase? (Write your answer as a percentage and display your answer to two decimal places.)

Answer 1

1. With the new process in place which gives an average customization time of 14 minutes a pair, that should be used for prioductivity calculations.

2. An average employee takes 14 minutes to customize a pair of inserts, therefore he can customize in an hour (60 minutes :

60/14 = 4.285 pairs of inserts.

3. Initially, the averarge employee would take 18 minutes to customize one pair. Therefore he could customize in an hour (in 60 minutes):

60/18 = 3. 33 pairs of inserts.

The increase in productivity is : 4.28 - 3.33 = 0.95

Percentage increase in productivity : (0.95/3.33)*100 = 28.52%