Assignment 2

Assignment 2

Memo

To: ABC Kitchens Inc.

25-09-201.

Priority: High

Subject: Productivity Assessment Tools

Quantitative Research Tools

ABC Kitchens, Inc., as a matter of fact, will produce kitchen durables. Which means the input of labor in such production will be high. However, the evaluation of productivity in such a situation is one of the tedious tasks and needs a thorough evaluation. The evaluation of productivity as well as forecasting requires most reliable and best forecasted data in order to have proper review. The evaluation of productivity of ABC Kitchens needs the most relevant data since it is the sources that complement the overall analysis. By and large, there are diversified variables to inculcate in the statistical analysis (Berenson et. al., 2009). But for this particular situation - ABC Kitchens Inc. the data involved would be of labor, input and output. Following are some of the tools which are most suitable according to the nature of business, i.e. ABC Kitchen's product, and the efficacy of the tools.

Labor Productivity

This tool of statistical analysis is used to ascertain how the productivity of labor is used to generate the gross output. However, the ABC would be the Kitchen durables. The variations in labor productivity exhibit the influence over multiple factors involved. These factors are ranging from inputs, technicalities, economies of scale, capacity utilizations etc. All of these factors are necessary for industrial production. Besides, this analytical tool - labor productivity, partly demonstrates productivity of labor itself. This represents the capacities of workers who are involved in production at the plant facility. The role of other inputs in this ratio i.e. input and output of labor is very essential, which are identified above (Jiying, 2011).

The production at ABC Kitchens Inc requires extensive use of labor. In addition to labor, there would be other inputs as well such as capacity of the plant including machinery, area, storage; all of these however do involved in this analytical tool. The measures used in labor productivity reflect the inputs from a holistic point of view. For instance, the effects of changes in capital inputs - core element of Kitchen products, intermediate inputs and overall productivity.

Like any other analytical tool, this tool also has benefits as well as disadvantages. One of the main benefits of this device is that it provides analysis which is easy to measure and readable. This simply means that the forecasting of output only needs prices on gross output rather the intermediate inputs. With this advantage, there is also a drawback of this particular too. Labor productivity, as a matter of fact includes other inputs as well, which can easily be misinterpreted in terms of productivity of individuals in the labor force (O'Mahony & Timmer, 2009). With reference to the efficiency of labor input, it expresses the ratio between the volume of output produced and time consuming. The more products are produced for a certain time unit, or the less time is consumed to produce one product, the higher the productivity (Blythe & Zimmerman, ...