1. Given Data
2020 2021
Output ($) 3000 4500
Labor (workers) 10 16
Cost of Labor ($ per hour) 10 10
Shift (Hours) 8 8
Material ($) 5000 7000
Capital ($) 1000 2000
Requirements
A. Total Productivity TP
2020 2021
TP = Output / Total inputs 0.441 0.438
Total Inputs= (labor cost+Material cost+Capital cost) = 6800 10280
labor cost = No. of Labors * cost of labor * shift Hrs. = 800 1280
B. Partial Productivity
2020 2021
Labor Productivity= Output / (labor cost) 3.750 3.516
Material Productivity=Output/(Material cost) 0.60 0.64
Capital Productivity=Output/(Capital cost) 3.00 2.25
C. The reasons for the change in productivity
Assignment No.2
Technology and Operation Management
Prepared By: Rabab Ali Ahmed
1- Solve the following problem in chapter 2
2. The total productivity of 2021 reduced due to decreasing labor productivity as a result of increasing the
number of labors and a decreasing capital productivity due to increasing the capital cost, even though
there was a slight increase in material productivity in 2021.
