PPRE Tutorial 6

1. 1. Identify, from the list below, items that can be classified as “output” in productivity determination.

2. i. Number of customers serviced.

   ii. Tonnes of QC-approved adhesives polymer produced by a polymer- manufacturing chemical plant.

   iii. Manpower cost spent on treating chemical waste for a water treatment plant.

   iv. The market value of jet fuel produced by a petroleum refining plant.

• i, ii and iv.

• ii, iii and iv.

• i and iii

• i, ii, iii and iv.

Answer explanation

Number of customers serviced, tons of polymer produced and market value of jet fuel, are all example of product/services that a company can sell for profit/value.

Manpower is a cost, which does not contribute to output by a company.

2. 2. Labour is a common parameter that can be used as “input” in productivity determination. Labour can be measured in the following method below EXCEPT :

• Number of hours worked

• Lost work days due to EHS (environment, health and safety) lapses

• Number of workers

• Cost of workers

Answer explanation

Lost work days due to EHS lapses will not contribute to output/productivity and hence is not a measurement of input.

Productivity can be improved by :

i. Increasing input together with a smaller increase in output.

ii. Maintaining output but increasing the input.

iii. Decreasing input but with a smaller decrease in output.

iv. Decreasing input but maintaining output.

• i and ii

• ii, iii and iv

• iii and iv

• i, ii, iii and iv

Answer explanation

Productivity = output / input

Let's rationalise each of the 4 options together.

Innovation is a factor that affects an organization’s productivity. The list below is examples of innovative items EXCEPT :

• Launching new products that is desired by consumers

• Employing new technologies

• Re-organizing the organization structures to improve response time, reduced batch cycle time, etc.

• Increasing the number of machineries to cope with rising demand

Answer explanation

Innovation is the successful exploitation of new ideas. This  can  takes  the  form  of  new  technologies,  new products,  new  organization  structures  and  ways  of working. Increasing machineries does not fit the definition and is not innovative.

5. 5. Identify, from the list below, the CORRECT reason why enterprise can drive productivity growth.

• New enterprises compete with existing firms for business for the existing market share of established product such as industrial gases, coatings, fuels such as non-leaded petrol, etc. Increased competition forces all firms to improve their productivity.

• New enterprises consist of better motivated workers who tend to be more productive.

• New enterprises increase the number of firms engaging in similar trades. This raises the possibility of lower taxes imposed by the authority (due to more revenue collected from the increased number of firms).

• New enterprises engage in new business opportunities using new approaches, technologies, etc. This increases the competition and forces existing firms to improve their own performance or risk losing market share.

Answer explanation

Topic 8 part 1, slide 14

6. Identify, from the list below, the benefits of process automation:

7. i Reduce human error

8. ii. Reduce labour cost

9. iii. Improve product quality and consistency

10. iv. Reduce the size of the plant and inventories

• i and ii

• i, ii and iii

• iii and iv

• i, ii, iii and iv

Answer explanation

Topic 8 Part 2 slide 3

Identify, from the list below, the CORRECT description of a distributed control system (DCS).

• A daily meeting between supervisors on the day allocation of resources (raw materials, manpower, etc.) for the efficient running of the plant.

• A computerized control system where the controller elements are distributed throughout the plant and are connected to a central area for monitoring, adjustment of set-points, etc. The instrument can be controlled locally or from the control room.

• A computerized control system where the controller elements are distributed throughout the plant. To change the set-points of the controller elements, workers will have to go to the specific controller and make the changes on-site. This prevents mistakes (workers making changes to wrong controller element, etc.).

• A data collection system which automatically records the amount of raw material (feed, energy, etc.) consumed by each unit processes of a plant. This allows workers to identify the suitable unit process for work improvement activity.

Answer explanation

Topic 8 Part 2 slide 4

8. 8. To reduce waste generated, changes can be made to the input or raw material. This can include using a purer raw material. Identify, from the list below, how this method can help reduce the amount of waste generated.

• Purer raw material has less toxicity and poses less danger to workers and the environment.

• The waste produced by a purer raw material is cleaner and can be exchanged with another plant which uses the waste as a resource.

• Purer raw material introduces less impurity into the process. This reduces the wastes generated by the process.

• The waste produced by purer raw material usually contained substantial amount of the raw material and thus, can be reclaimed for use again in the process.

Answer explanation

Topic 8 part 2 slide 26 Source Reduction

Identify, from the list below, the CORRECT definition of value added.

• It is represented by the equation : value added = sales – total wages

• It is generated solely by the effort of workers in the organization.

• It can be expressed in various types of units (tonnes, litres, no. of customers serviced, etc.)

• It represents the wealth created through the organization’s activities.

Answer explanation

Topic 8 Part 1 slide 20

Identify, from the list below, the items that the wealth generated through the value added are distributed to.

i. Workers’ salary

ii. Dividend paid to organization’s shareholders.

iii. Cost of goods purchased to make the product

iv. Advertising fees to market the product

• i and ii

• i, ii and iv

• iii and iv

• i, ii, iii and iv

Answer explanation

Topic 8 Part 1 Slide 21