Labor Productivity Improvement at Fanco Manufacturing
How did labor productivity at Fanco Manufacturing change from May 2020 to June 2020?
a) labor productivity improved by 13.88%
b) labor productivity declined by 13.88%
c) labor productivity improved by 12.19%
d) labor productivity declined by 12.19%
e) None of the above
Answer:
The change in labor productivity can be calculated by taking the difference between the final productivity value and the initial productivity value and dividing that by the initial productivity value. In this case, the change in labor productivity is 13.88%.
At Fanco Manufacturing, there was a significant improvement in labor productivity from May 2020 to June 2020. The initial labor productivity in May 2020 was 6.34, and it increased to 7.22 in June 2020. To calculate the change in labor productivity, we subtract the initial value from the final value and divide it by the initial value.
So, the change in labor productivity is calculated as (7.22 - 6.34) / 6.34 = 0.1388 or 13.88%. This means that the labor productivity at Fanco Manufacturing improved by 13.88% during this period.
This improvement in labor productivity indicates that the company's operational performance has become more efficient and effective. It could be a result of better processes, increased employee performance, or other factors that contributed to higher productivity levels.
Overall, the data shows a positive trend in labor productivity at Fanco Manufacturing, which is a promising sign for the company's performance and competitiveness in the market.