Question

please im looking for an answer to the highliged question in blue from the second picture. the question in the first picture along with the answer. i just need an answer for the higlighted question in blue from the second picture. please. thank you.

6. Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new system, production has increased to 90 pieces of furniture per day from the previous 60 pieces of furniture per day. The number of defective items produced has dropped from 10 pieces per day to 1 per day. The production facility operates strictly eight hours per day. Evaluate the change in productivity for Aztec using the new assembly process. Answer: Using only the non-defective production, productivity has increased from (60 - 10) = 50 pieces per day to (90 - 1) - 89 pieces per day. Change in productivity =(89 - 50/50 x 100% = 78% There is a 78% increase in productivity using the new assembly process.

Answer 1

Before implementing the new assembly process the productivity would be calculated as follows.

Production per Day 60 Defective Goods Produced 10 per Day

Hence Final Product per Day = 60-10= 50

Resultant Productivity = 50/60*100= 83.33%

After Implementing the New Assembly process the productivity has gone down to 78% instead of increasing which is calculated as follows.

60-10=50 &

90-1=89

(89-50)/50*100=78%

Gross Increase in Production is 90-60=30, 30/60*100=50% increase in production & decrease in defective goods by 90% (9/10*100).

If i am a Manager, then i think in two ways for the rejected material. a) Is the rejected material were reusable for me ? can i utilised the same to make new product? How is the further processing cost? Is the new product fetch value in the market. ? whether it consume the further processing cost & earn profits? b) Is the Rejected Material has the Scrap Value? Is the rejected material has alternative use? Whether it gives me Opportunity Profits?

If i am a Customer then in first instance i never buy a defective goods as it is my general first reaction towards my value of expending. I always prefer good quality of Product/Service against my Value of money. My second thought being a customer is how defective the goods are? is it repairable with less amount of spending. can i reuse it after temporary denting-painting. If the denting-painting work gives me the same result then i will certainly opt for that option. It all depends upon my necessity of the product and its ultimate use.