An operation has a 15 percent scrap rate. As a result, 79 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "%" sign in your response.) This would amount to an increase of % rev: 03_15_2012 Explanation: Without scrap the output can be 92.941 pieces per hour 79 = 92.941 pieces per hour 1 − .15 (92.941 pieces per hour) × (100% – 15%) = 79 pieces per hour. The increase in productivity would be 92.941 – 79 = 13.941 pieces per hour. This would amount to an increase of (13.941 / 79) = 17.6%.

An operation has a 15 percent scrap rate. As a result, 79 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap? (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "%" sign in your response.)

   

This would amount to an increase of

%

rev: 03_15_2012

Explanation:

Without scrap the output can be 92.941 pieces per hour

  

79	= 92.941 pieces per hour
1 − .15

    

(92.941 pieces per hour) × (100% – 15%) = 79 pieces per hour.

The increase in productivity would be 92.941 – 79 = 13.941 pieces per hour.

This would amount to an increase of (13.941 / 79) = 17.6%.