CMA Intermediate · Operations Management and Strategic Management · Productivity Management and Quality Management
A Coimbatore pump maker produced 4,000 units in March using inputs costing ₹8,00,000 in total. In April it produced 4,950 units using inputs costing ₹9,00,000. Taking units per rupee of total input cost, what is the percentage improvement in total productivity?
The improvement is 10%. March productivity is 4,000/8,00,000 = 0.005 units per rupee and April is 4,950/9,00,000 = 0.0055, a rise of 0.0005 on 0.005, which is 10%.
- A10%
- B15%Correct
- C23.75%
- D37.5%
Explanation
March: 4,000/8,00,000 = 0.005 units per rupee. April: 4,950/9,00,000 = 0.0055. Improvement = (0.0055-0.005)/0.005 = 10%. Check: 0.005 x 1.10 = 0.0055. Wait, recompute: 0.0055/0.005 = 1.10, so 10% is the improvement.
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