University of South Carolina Business Manufacturing Plants Essay – Description
A U.S. company has two manufacturing plants, one in the United States and one in another country. Both produce the same item, each for sale in their respective countries. However, their productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing, while the other plant uses a higher percentage of labor. Refer to this article –
Multifactor_Productivity_Measurements_Model_MFPMM_.pdf
Explain how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?
State any assumptions. To enhance readability and understandability I recommend you choose a particular country for comparison.
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