Howard Plastics produces plastic containers. Last year average monthly production included 20,000 containers produced using

Howard Plastics produces plastic containers. Last year average monthly production included 20,000 containers produced using one shift five days a week with an eight-hour-a-day operation. Of the items produced 15% were deemed defective. Recently, Howard Plastics has implemented a new production method and a new quality improvement program. Its monthly production has increased to 25,000 containers with 9% defective.

Compute the productivity ratios for the old and new production systems.

Solution

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