ABC Ceramics Inc. makes four (4) models of ceramic vases for a chain of department stores. The figures for output that has passed the quality inspections, as well as the main inputs, are shown below.

  

ABC Ceramics Inc. makes four (4) models of ceramic vases for a chain of department stores. The figures for output that has passed the quality inspections, as well as the main inputs, are shown below. The company pays its direct workforce $10.00 per hour on the average, and the cost of the pound of materials is $4.00 for all models, despite the fact that each model of vase needs material from a different supplier.
VASE MODEL A B C D
Production per week (units) 180 400 500 350
#Workers (workers) 4 4 5 6
Hours per week per worker (hrs/worker) 44 48 52 36
Material used for the weekly production (lbs) 255 570 720 500
Plant overhead per week ($) 927 1960 2550 1820
The management asked you to make recommendations regarding certain decision areas and specifically indicated that your comments should be based on PRODUCTIVITY ANALYSIS.
There are four (4) parts of this question, and they are:
A.) As the company wants to streamline its activities, which model do you recommend to be discontinued, and why?
A , B, C, OR D ? choose one.
B:)
What was the criterion that made you recommend the discontinuance of the model that you recommended?
Material productivity?
Multi-factor productivity?
Labour-cost productivity?
Production volume?
Plant overhead?
Labour-hour productivity?
C.)
hould the company discuss the quality of materials with any of its four suppliers, in
case there are significant differences between the models?
Yes, with all suppliers
No, there are no significant differences
Yes, with suppliers of material for C and D
Yes, with suppliers of material for D
d. ) Is there a reason to analyze in more depth one or several of the models with respect
to how effectively and efficiently the labour is utilized?
No, no need, they are all similar
Yes, for B & C
Yes, for B
Yes, for C & D
Yes, for D

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