Using the learning curve to determine production rates, Shuzworld will be able to adjust their production, and cost to help stay competitive in the industry. The learning curve will helps the company to predict the needed cost per unit, so the business can determine the profit it needs to stay competitive. The learning is based on the theory that the employees will get better at their tasks doing the job more frequently. The theory also supports the time needed to produce the tasks will decrease as production continues. Using the learning curve, Shuzworld can determine how much to charge for its products and know the how much profit to expect for selling at the determine price. It also allow the company the option to develop a large learning curve in the industry, so Shuzworld can create an aggressive pricing policy that focus on cost reductions, build on shared experience, as well as the ability to keep more inventory for the demand in orders to save on labor costs.
The coefficient approach is the best method for the company to use. The coefficient approach allows Shuzworld to determine the overall labor hours needed to produce the sandals, and determine the hours of cost production July">production cost by multiplying the labor hours by the cost of labor, and divide that number by the amount of units made. The coefficient approach calculates the require units number, by multiplying the labor hours required for manufacturing the first units by the learning curve coefficients for the required units. There are other ways to determine the learning curve too. The company could use the arithmetic approach to calculate the learning curve.
The Essay on Cost Labor Industry Point
Changes in cost and efficiency The situation today in the airline industry is basically a price / cost war. Companies are battling to cut and keep their operating cost low in order to remain competitive in an industry that is strongly driven by price. The principal cost factors that drive the industry are labor and fuel. In terms of labor Nee leman, Jetblue's CEO, said that "The biggest problem in ...
This approach requires the company to multiply the hours required per unit by the learning curve rate each time production doubles. This approach appears to be an easier way to determine production time; it makes it difficult to know what production time for specific units, which may decrease in the areas when production is not doubling. But Shuzworld could have used the logarithmic approach to determine the labor hours per specific unit. The logarithmic approach would allow the company to calculate the labor per unit by multiplying hours to produce the first unit slope of the learning curve. The result of this approach will be the same results of the coefficient approach. C. Staffing Plan Recommendation
Shuzworld will use several key factors in determining its staffing plan. Then overall goal is for the company to produce a staffing plan that will allow the company to get the maximum utilization out of its work force while, while keep cost low and the company profitable. The best way to reach this goal is to assign jobs to employees that minimize costs, reduce idle time, and completion times. The assignment method will help the company keep production cost down. Currently the company operates four machines, which each has an individual operator during production. It cost ten dollars of production time for job 1 to be completed by operator A. It cost eleven dollars for job 2 to be completed.
It cost nine dollars of production time to complete job 3, and ten dollars for job 4 to be completed. It cost twelve dollars of production time for operator B to complete job 1. It cost nine dollars for job 2 to be completed, and eight dollars to complete jobs 3 and 4. It cost ten dollars of production time for the operator C to finish job 1. It cost eleven dollars of production time for operator C to finish job 2 and 3, and nine dollars to finish to job 4. It cost eleven dollars of production time for job 1 and 2 to be completed by operator D. It cost nine dollars for job 3 to be completed, and ten dollars for job 4 to be completed. The purpose of the assignment method is to develop a chart that shows the cost to produce a particular task and have an employee complete the job that is the most cost efficient for the company.
The Essay on Relationship between productivity and the cost of production
What is the relationship between productivity and the cost of production? The relationship between productivity and the cost of production is your cost per day or per hour compared to your productivity. By examine these two things together. The productivity which is your output for the amount of hours worked compared to the total cost of a certain item – you will be able to reach a “break even ...
By maximizing the cost factors that go into creating the product, the company will be cost effective in it’s the overall costs associated with completion of the products being produced. In this scenario Operator A should be assigned to job 1. While job 1 could also be done for the same cost assigning Operator C it will be more beneficial to assign job 4 to operator C when doing the cost analysis. Job 2 should be assigned to Operator B. Operator B has a lower production cost on the 2nd job than any other operator as he only requires $9 of production time, while all of the other operators require $11 of production time, saving the company $2 in production time. Job 3 should be assigned to operator D. Operator D has the 2nd lowest production cost for that task, however the lowest operator cost is operator B, and operator B has already been assigned to task 2 in order to save $2 in production costs, and there is only a $1 production cost difference between the two for task 3.
Task 4 should be assigned to operator C. Once again operator C is not the most cost efficient for the task however the most efficient operator is operator B and operator B is assigned to task 2 where the cost production savings on task 2 is $2 and there is only a $1 cost production difference on task 4. The end schedule result should be Operator A on task 1 for a production cost of $10, Operator B on task 2 for a production cost of $9, Operator D on task 3 for a production cost of $9, and Operator C on task 4 for a production cost of $9. The overall production cost for all 4 jobs is $37.
C1. Staffing Plan Output
The company stated above the overall production cost is $37, per machine. Job 1, has machine A cost $10, job 2 = machine B cost $9, job 3= machine D cost $9 , and job 4= machine C cost $9, which equal a total of $37. It is recommended that the company shift production operators, around to various jobs which will be the most efficient way to save the cost in production. Job Assigned to Cost Job 1- Machine A 10
The Essay on Reducing Production Cost By Use Of Information Technology
This is a research proposal aimed at reducing production losses in the manufacturing department of an organization. The problem domain is how well information system can be adopted in an organization to monitor production and reduce on loss of production (Behling, 14). The process of making a product passes through various departments in an organization. The initial step in the production is ...
Job 2- Machine B 9
Job 3- Machine D 9
Job 4- Machine C 9
Total 37
C1a. Staffing Plan Analysis Tool
The assignment method of scheduling is the best system to use because the Shuzworld is trying to reduce production cost through scheduling. The method also assists the company in choosing the best operator to do a job by the cost advantages on specific tasks. The assignment method allows the company to select which operator can produce the products at the lowest cost. By using the assignment method as opposed to other scheduling methods, the company can focus on cost as opposed to other production priorities. D. Outline
There are two ways to schedule tasks. Tasks can be scheduled forwards or backwards. Tasks are scheduled forwards when the company knows the specific job requirements (MyOMLab, 2012).
Tasks are typically scheduled by orders (MyOMLab, 2012).
One downfall of this is that at times orders may not meet the due dates as production is slowed by certain tasks waiting to begin because they are dependent on other tasks. Backwards scheduling can be accomplished when scheduling begins with the due date and works backwards based on specific lead times (MyOMLab, 2012).
This is often done when resources do not currently exist, and requires a lot of balancing in order to complete the process (MyOMLab, 2012).
In order to be effective in moving units Shuzworld should schedule incoming orders without violating their capacity restraints. They should check the availability of tools and materials before scheduling, and establish effective due dates and monitor the progress on a regular basis to ensure production is moving at an expected rate. Shuzworld also needs to be aware of their machine and labor capabilities and match their schedule accordingly. This is important when dealing with machine reliability, as well as worker outputs.
It is imperative the company establish an effective scheduling system so it does not backlog orders. Shuzworld want to make sure they have adequate staff to fill all orders. If the company is not staff properly and take on more orders, production will become back logged. If production becomes backlogged, the company is at risk of not being able to fill orders. Also on the other hand it is important the business have enough orders. Because if it does not, it will create negative effects on production, such as unwanted idle time, and wasted capital. Therefore it is imperative that the business be aware of work in progress, and manages its work flow effectively.
The Essay on Tendency To Procrastinate Tasks Things Time
Perhaps there are a few things you inevitably procrastinate about. For me, it is sending condolence letters and sorting and filing those ever-growing piles of paper that, had I tackled them when the piles were short, would have been much less forbidding. But perhaps your tendency to procrastinate is more pervasive, affecting many or all spheres of your life and keeping you from realizing your ...
This will allow the company to correct any production problems in a timely manner and reduce or increase work center input. The best way to manage the workflow of units is for Shuzworld to implement the Gantt charts. The Gantt will show the all loading and idle times in each department, and what machines are being currently used. The chart also helps in scheduling specific tasks, by indicating the jobs in progress and knowing when there are idle times. The Gantt also informs the company when it is time to maintenance its machines. This is important to prevent break downs in machinery which will slow down production. The production of Shuzworld is dependent on its reliability of it machines working so preventive maintenance will ensure production continues efficiently. Another system to use to schedule is to fill orders when they are received.
The company will look fair to its customers, but if the company does not meet the deadlines leaves a big risk in productions. If the company produce orders as they get them they are in risk of not meeting due dates for orders. The orders should be process by the production times or by length of time it takes to produce the order. It is important that the company have and system to process orders according to their due dates. The company will be in the position to ship its products to customers and allow the company to increase its production with a place to store product in house. It also allows the company to schedule jobs with priority.
Sources
MyOMLab. (2012).
[Class handout, A. Neely, Western Governors University, 2012]. Shuzworld Case Study. (2012).
[Class handout, A. Neely, Western Governors University, 2012].
