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The first-line supervisor is usually responsible for the productivity in terms of units produced during the period. He or she can not control the price of inputs (materials, labor). Thus, the best productivity measure for the first-line supervisor is the units produced per labor hour, which is 5.00 units per labor hour (1,500 ÷ 300).
This is the average price for the pound of material used in production Product RX-6. However, the first-line supervisor does not control the price and his or her performance cannot be measured on this basis.
This is the units per labor dollar. However, the first-line supervisor does not control the labor rates and his or her performance cannot be measured on this basis.
This is the labor rate. However, the first-line supervisor does not control the labor rates and his or her performance cannot be measured on this basis.