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Assignment Details:

Subject: Operation Management

Assignment Details

An Adidas manufacturing company is running a plant with two production lines:
Line 1 produced 200 pairs of soccer boots in one day at a cost of E20000 using 4 people. While Line 2 produced 10000 tracksuits a day at a cost of E5000 using 6 people. Further, Out of the cost of E 20000 in Line 1, E10000 was spent on leather, E5000 is the overhead cost of running the factory and the remaining E5000 is spent on Labour Costs. Out of the E5000 in production cost in Line 2, E3000 is for the garments, E1000 is production cost and the other E1000 is labour expenses.

Questions:

a) calculate the productivity in Line 1 in terms of 1) overhead cost and 2) Labour costs
b) calculate the productivity in Line 2 in terms of 1) garments cost and 2) production cost.
C) Define Total Factor/ Multifactor Productivity.

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