Gibson Products Produces Cast Bronze Valves for Use in Offshore

question 35

Essay

Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15 minute break during the morning work session and another at the afternoon work session. Gibson is in a competitive industry, and needs to increase productivity to stay competitive. They feel that a 20% increase is needed.
Gibson's management believes that the 20% increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.
a. Calculate labour productivity for the initial situation.
b. Calculate labour productivity for the hypothetical 20% increase.
c. What is the productivity after the change in work rules?
d. Write a short paragraph analyzing these results.

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Definitions:

Special Treatment

Preferential or distinct consideration given to an individual or group, often based on specific needs, status, or criteria.

Correlation

The extent to which two variables are related to each other.

Dependent Variable

In research, the variable that is being tested and measured to see if it is affected by changes in another variable.

High-protein Breakfast

A morning meal rich in proteins, which can include eggs, Greek yogurt, or lean meats, believed to aid in satiety and weight management.