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retownes retownes
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6 years ago
Mark's Ceramics spent $4000 on a new kiln last year in the belief that it would cut annual energy usage 25% over the old kiln. This kiln is an oven that turns "greenware" into finished pottery. Mark is concerned that the new kiln requires extra labor hours for its operation. Mark wants to check the energy savings of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial. Mark has the following data to work with:

   Last Year   This Year
Production (finished units)   4000   4000
Greenware (pounds)   5000   5000
Labor (hrs)   350   375
Capital ($)   15000   19000
Energy (kWh)   3000   2600

Were the modifications beneficial?
Textbook 
Operations Management

Operations Management


Edition: 10th
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kadajikadaji
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retownes Author
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