What-If and Scope

Output What-If

Higher output with the same input costs raises multifactor productivity.

highlighted = computed this step

Higher Output

The what-if output is 720 units.

what-if output=720\text{what-if output} = 720
Output what-ifThe table recomputes productivity when output rises and inputs stay fixed.output what-ifvalueoutput720total input2400MFP3/10gain1/20

What-If Productivity

The what-if productivity is 3/10.

what-if MFP=3/10\text{what-if MFP} = 3/10
Multifactor productivityThe chart compares base output with the output what-if.multifactor productivityoutput 600; total input 2400; MFP 1/4caseoutputlabormaterialenergytotal inputMFPbase600120080040024001/4what-if720120080040024003/10baseoutput 600MFP 1/4what-ifoutput 720MFP 3/10labor 1200material 800energy 400total input 2400what-if MFP 3/10; gain 1/20

Productivity Gain

The productivity gain is 1/20.

3/10−1/4=1/203/10 - 1/4 = 1/20
Multifactor productivityThe chart compares base output with the output what-if.multifactor productivityoutput 600; total input 2400; MFP 1/4caseoutputlabormaterialenergytotal inputMFPbase600120080040024001/4what-if720120080040024003/10baseoutput 600MFP 1/4what-ifoutput 720MFP 3/10labor 1200material 800energy 400total input 2400what-if MFP 3/10; gain 1/20