Sawyer’s Management Business Ethics
Essay Preview: Sawyer’s Management Business Ethics
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Name: Student X Due: 8/27/2015
Student Id: Course: MGMT310
Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and equivalent month this year:
Last Year
Production (dozen)
1,000
1,000
Labor (hours)
Resin
Capital investment ($)
10,000
11,000
Energy (BTU)
3,000
2,850
Labor
Previous Year
(1000 x 12) / 300 = $40 Billiard Balls per labor hour
Current
(1000 x 12) / 275 = $43.636 Billiard Balls per labor hour
Percentage change
(43.636 – 40) / (40 x 100) = 9.09%
Resin
Previous Year
(1000 x 12) / 50 = 240 Balls per Resin hour
Current
(1000 x 12) / 45 = 266.67 balls per resin hour
Percentage Change
(266.67 – 240 ) / (240 x 100) = 11.11%
Capital Investment
Previous Year
(1000 x 12) / 10,000 = 1.20 Balls per capital investment hour
(1000 x 12) / 11,000 = 1.09 Balls per C.I hour
Percentage Change
(1.09 – 1.20) / (1.20 x 100) = -9.17%
Energy
Previous Year
(1000 x 12) / 3000 = 4 balls per BTU
(1000 x 12) / 2850 = 4.21 balls per BTU
Percentage Change
(4.21 – 4) / (4 x 100) = 5.25%
Page Break
1.10)
Sawyer’s, a local bakery, is worried about increased costs–particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Judy Sawyer, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications