At the start of the semester Custom Kicks personnel were struggling to quickly customize their shoe inserts to their customers' feet. This hurt sales as customers became frustrated during the customization process and would hesitate to refer friends.During week three of running the business, it took an average employee about 21 minutes to customize one pair of inserts. Recognizing this challenge, management and key employees analyzed the customization process and made some time-saving changes. Two weeks later, after training all employees on the new process, an average employee could customize a pair of inserts in about 17 minutes.In this case, what is the output that should be used for productivity calculations? 21 minutes 17 minutes 1 pair (of customized inserts)After making the time-saving changes mentioned above, how many pair of inserts could an average employee complete in one hour? (Display your answer to two decimal places.) After making the time-saving changes mentioned above, by what percentage did Custom Kicks' productivity increase? (Write your answer as a percentage, and display your answer to two decimal places.) %
Question
At the start of the semester Custom Kicks personnel were struggling to quickly customize their shoe inserts to their customers' feet. This hurt sales as customers became frustrated during the customization process and would hesitate to refer friends.During week three of running the business, it took an average employee about 21 minutes to customize one pair of inserts. Recognizing this challenge, management and key employees analyzed the customization process and made some time-saving changes. Two weeks later, after training all employees on the new process, an average employee could customize a pair of inserts in about 17 minutes.In this case, what is the output that should be used for productivity calculations? 21 minutes 17 minutes 1 pair (of customized inserts)After making the time-saving changes mentioned above, how many pair of inserts could an average employee complete in one hour? (Display your answer to two decimal places.) After making the time-saving changes mentioned above, by what percentage did Custom Kicks' productivity increase? (Write your answer as a percentage, and display your answer to two decimal places.) %
Solution
The output that should be used for productivity calculations is 1 pair (of customized inserts).
After making the time-saving changes, an average employee could complete approximately 3.53 pairs of inserts in one hour. This is calculated by dividing 60 (minutes in an hour) by 17 (minutes it takes to customize one pair of inserts).
To calculate the percentage increase in productivity, we first need to find the initial and final productivity rates. Initially, an employee could make about 2.86 pairs of inserts in an hour (60/21). After the changes, this increased to about 3.53 pairs per hour. The percentage increase is therefore ((3.53 - 2.86) / 2.86) * 100, which is approximately 23.43%.
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