Date: Feb 7th, 2012
Subject: Assignment 1: Shingle Sense
To: Matt Ford
From: Ashley Farnsley
Phuong Ly (Leader)
Director of Operations has requested a report on productivity for Ray St. Clair Roofing, a measure which had no previous estimate. This study estimates annual change in productivity, compares it to national averages, and evaluates productivity differences based on crew size.
Partial Productivity. Ray St. Clair has shown a 3.3% productivity improvement over a two-year span.
Comparing Results. Ray St. Clair was 2.6% more productive than the national average, found to be at 0.7% during the last two years. In addition, a study on the efficiency differences within crew size proves that crews with 2 members have a tendency to be more productive.
More Investigation. We suggest continued and consistent productivity reporting using an information system to accurately track work hours.
Method. Our study analyzes two annual samples of data obtained from Ray St. Clair Roofing. Yearly samples were divided into six 2-month periods, and provided the number of square feet of roofing installed as well as crew size, respectively. Partial productivity calculations (output/input or sq. ft. installed/labor) were done with respect to direct labor hours. Year over year percent change was calculated, and then compared to the national year over year percent change in the US non-farming sector (data acquired from the US Bureau of Labor Statistics). Non-farming productivity measures were used due to Ray St. Clair being considered a part of the service sector. Lastly, productivity differences among crew size were calculated and assessed.
Partial Productivity. Each row in Table 1 represents a 2-month segment of labor as compared to output. To the right, yearly productivity figures were estimated using the output/input formula as given by the BLS. TABLE 1 : Productivity Among Last Two Years
| Year 1
| Year 2
| YOY % Change
| Yr. 1
| Yr. 2
| P1= 13.64
| P2= 14.10
| YOY% = 3.3%
Input ( I ) = Crew Size x 40 Hour Week x (52wks/6segments)
Output (O) = Number of Square Feet Installed
Note: Partial Productivity was estimated using output/single resource unit. Source: Ray St. Clair Roofing
To summarize, the productivity estimates are 13.64 ft2/DLH for the first year, and 14.10 ft2/DLH for the second year....
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