INTERPERIOD MEASUREMENT OF PRODUCTIVITY, PROFILES
Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations:
|
|
2006 |
2007 |
|
Output |
307,200 |
360,000 |
|
Power (quantity used) |
38,400 |
18,000 |
|
Materials (quantity used) |
76,800 |
81,000 |
Required:
Compute the productivity profiles for each year. Did productivity improve? Explain.