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Question: lake charles seafood makes 500 wooden packing boxes for fresh...

Question details

Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working two 10-hour shifts. Due to the increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to product 650 boxes per day.

  1. Calculate the companies productivity before the change in work rules and after the change.

First,we have to calculate Productivity before change and after change:

Productivity before change = Units Produced/Labor Hour Used

                 500/(2*10)=25 boxes/hour

                  Productivity after change= Units Produced/Labor Hour Used

                  650/(3*8)=27.083 boxes/hour

                   

  1. What is the percentage increase in production?

Percentage increase in production=Change in the productivity rates/Old productivity

((27.083-25)/25)*100=8.332%

         3.) If production is increased to 700 boxes per day, what is the new productivity?

           New Productivity where the plan working two 10 hours shift:

           New Productivity= Units Produced /Labor in hour used

           700/(2*10)= 35 boxes/hour

            New Productivity where plan working three 8 hours shift:

           700/(3*8)= 29.167 boxes/hour

What issues do you foresee becoming a problem with this kind of growth? How do you manage personnel shifts and moral?

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