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Acme Tire Service completed 100 tire changes, 6 brake jobs, and 16 alignments in an eight hour day with his standard crew of 6 mechanics. A brake specialist cost $16 per hour, a tire changer costs $8 per hour and an alighnment mechanic cost $14 per hour. The materials cost for a day was $2000, and overhead cost was $500.

a) What is the shop's labour productivity if the retail proce for each respective service is $60, $150, and $40?

b)What is the multifactor productivity, if the crew consisted of two of each type of mechanic?

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  • Production and Operations Management -

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