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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

A manufacturing unit in Pune uses 2,000 labour hours and 500 machine hours in a month. Output is 24,000 units. If the firm measures partial productivity with respect to labour, what is the labour productivity?

Labour productivity is output divided by labour hours, so 24,000 units divided by 2,000 labour hours gives 12 units per labour hour. The figure of 48 uses machine hours, which measures machine productivity, not labour productivity.

  1. A12 units per labour hourCorrect
  2. B48 units per labour hour
  3. C4.8 units per labour hour
  4. D26 units per labour hour

Explanation

Labour productivity = output / labour input = 24,000 / 2,000 = 12 units per labour hour. Dividing by machine hours gives 48, which is machine productivity. Dividing by the total of both hours gives 9.6, not 12.

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