Decision Analysis

A1.

It's recommended that management form assembly line processes into 5 separate terminals with the corresponding task/s at each terminal in order to complete the Rugged Wear Work boot.

Station # Task Flow Time

1 A 10

2 B, C 9

3 D 8

4 E, F, G 10

5 H 9

This 5 workstation layout offers a determined rotation time of 10 minutes (or less) per terminal and an overall time of 46 minutes necessary for each rotation. We started off the rotation with 10 minutes on task A, 9 minutes on task B and C, 8 minutes on task D, 10 minutes on tasks E, F and G, and completed the cycle with 9 minutes on task H. Terminals 2 and 4 have various assembly procedures, so employees at these workstations should have the training of each process to ensure continued movement of production and decrease in assembly time. This is the most proficient and cost effective arrangement the business can have for the work boot production line. This workflow improvement accomplished 92.00% efficiency and 8% balance delay.

Justification

Performance times and sequence requirements for tasks A through H were input into an assembly line balancing tool using excel documents, which analyzed it and determined the total required amount of terminals to be 5 for the most effectual workflow. Ten minutes was the total amount of time per terminal with the needed amount of time per rotation at 46 minutes. Based on the calculations, this process was given a 98% proficiency rating. This tool was carefully chosen to assist in increasing the proficiency of assembly and a probable decrease in assembly line area. A correctly aligned assembly line area will create growth in quantity while decreasing assembly costs.

B1.

The determination was made that the 4 month production cycle of the Maui Sandal would yield 20121.71 hours of labor costing $21,731.45 at $1.08 per hour of labor. The first month requires 3737.741 labor hours costing $4,036.76. The second month requires 4772.796 hours of labor costing $5,154.62. The third month requires 5509.353 hours of labor costing $5,950.10, while the fourth month requires 6101.82 hours of labor costing $6,589.97. Displayed you are able to witness the decrease in production hours as more sandals are manufactured for the new sandal production line. As additional sandals are manufactured, the production of this line of sandals will slowly decrease (over time) the total cost amount of labor. This analysis helps the company to determine pricing, capacity, employment levels, pricing and cost of this product in today's market.

Justification

We selected the learning curve decision tool in the excel document add-in because of the tactical value of the learning curve. When properly used, it assists in the construction of strategic decisions of capacity, costs, pricing and employment levels. Recurrence of the exact same process results in less time extended for that process. Therefore, you have additional time to yield additional product as it now takes fewer minutes for product production. Process changes and resources available can adjust the learning curve as well. In order to reach cost savings and for a curve to exist, there must be an increase in volume. As assembly time increases, you will find a decrease in labor smaller than when you first started production. From the analysis you can ascertain that 3737.741 hours of labor were used to manufacture the first five sandal batches and 6101.82 hours of labor to manufacture four times that of the first batch.

C1.

The below assigned staffing plan will accomplish the most cost efficient at $37 for the business. This is achieved by having Machine Operator (MO) 1 execute task 1, MO 2 execute task 2, MO 3 execute task 4, and finally MO 4 execute task 3. This accomplishes time minimization and company cost reduction.

Justification

A selected excel assignment analysis tool was used in executing a cost effective analysis on the four machines and the four tasks to best conclude which machine should complete which task thereby providing the company with the most cost effective option. Utilizing this analysis allows the company to have the most cost effective and best time management options available.

D.

Short Term Scheduling

Effectiveness is the fastest transfer of goods and services through a facility and continues on through delivery. This effectiveness creates minimal overhead charged to the company.

Scheduling Issues (planning)

Capacity - Completed quarterly or annually dictated by the discarding or purchasing of equipment or facilities.

Collective preparation (aggregate planning)- Judgments prepared concerning employees, facilities, subcontractors, inventory, and/or equipment.

Master scheduling - Analyzes the collective preparation (aggregate) schedule and breaks it down into a weekly timetable for precise product lines or individual products.

Forward and Backward Scheduling - Forward scheduling begins the project tasks when the requirements of the task