TIP Ltd. manufacturers unique paperweights featured in decorative magazines and on Discovery Channel. Last year, TIP produced 120,000 paperweights in its workshop in Concord, Ontario, to meet demands in North America and overseas markets. To accomplish this, each crafts person at the Concord workshop worked 140 hours per month. If the labor productivity at the plant is 2.5 paperweights per labor hour, how many laborers are employed at the workshop?
This question requires that all external factors are equal and we are working with a standard 12 month cycle.
Let the number of people employed = x. Therefore, as each person works 140 hours per month, we know that 140 hours times x will give us the number of people.
If 2.5 paperweights are being produced per hour to manufacture 120 000 per year, we divide by 12 months first to give us the monthly productivity of 10 000 paperweights. The labor hours are worked according to the total hours (of all the employees).
Therefore, the calculation will be based on the calculation for productivity which is :
Productivity (2.5 units per hour) = Output(units produced: 10 000 pm ) divided by input (the labor: 140 times x).
Therefore, 2.5 = 10 000/ 140x = 28.57 people which of course must be rounded off. There are thus, 29 people working for TIP Ltd.