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Operations Management - Productivity Ratios

Howard Plastics produces plastic containers. Last year average monthly production included 20,000 containers produced using one shift five days a week with an eight-hour-a-day operation. Of the items produced 15% were deemed defective. Recently, Howard Plastics has implemented a new production method and a new quality improvement program. Its monthly production has increased to 25,000 containers with 9% defective.

Compute the productivity ratios for the old and new production systems.

Thank you.

Solution Summary

The solution computes productivity ratio for Howard Plastics.

$2.19