Shuzworld Case

Subject: Decision Analysis - Task 1

In this task, I will use Shuzworld case study as an operation consultant to provide recommendation after analyzing the problem, applying the appropriate decision analysis.

A1. Recommend how to improve the current workflow in the plant for the Rugged Wear Workboot.

We recommend that management organize this production process into 5 workstations with the appropriate tasks in each workstation to produce the Rugged Wear Workboot.

Station # Task Time

1 A 10

2 B, C 9

3 D 8

4 E, F, G 10

5 H 9

The 5 workstation layouts would provide a maximum cycle time of 10 minutes or less per station with a total time needed for each cycle of 46 minutes. Task A would start the cycle and take 10 minutes. Task B and C would follow and consume 9 minutes. Task D would follow and take 8 minutes. Task E, F and G would begin and take 10 minutes followed by the final step H and consume 9 minutes. Because workstations 2 and 4 contain multiple production processes these employees should be cross trained in performing these tasks to help keep the process moving and in fact over time could reduce the process time. This arrangement would be the most efficient and provide the greatest cost savings to the company for the production of the Workboot. This improved workflow achieved 100.00% efficiency with a 0% balance delay.

Justification

We imputed the performance times for each task, A through H and the sequence requirements into an assembly line balancing tool to perform an analysis to determine the proper number of stations and the most efficient workflow possible. The analysis tool calculated that the number of workstations needed was 5. Maximum station task time was 10 minutes and the time needed per cycle was 46 minutes. These calculations gave this process an efficiency of 100.00%.

This decision tool was selected to help achieve a higher efficiency of production and a possible reduction in production floor space. A properly balanced line will increase throughput and lower production costs.

B1. Analyze the initial and ongoing costs needed for the new sandal line being introduced. Management wants to know the hours and cost of labor each month to produce the schedule set forth.

We have determined that the Maui sandal 4 month production run will take a total of 20126.97423 labor hours and cost 20,121.71 at the labor rate of $1.08 per hour. Month 1 will require 3737.741 labor hours at a cost of $4,036.76. Month 2 will require 4775.66988 labor hours at a cost of $5,154.62. Month 3 will require 5511.74336 labor hours at a cost of $5,950.10 and month 4 will require 6101.82 labor hours at a cost of $6,589.97. As you can see the hours required for the production of sandals decrease as more sandals are produced. By continuing to produce this line your total labor costs will continue to decrease but at a slower rate as more sandals are produced. This information will help the company determine employment levels, capacity, costs and their pricing of this product in the marketplace.

Justification

The learning curve decision tool was selected because of the strategic importance that is placed on the learning curve. The learning curve is applied to aid in the formulation of strategic decisions about employment levels, capacity, costs and pricing. Repetition of the same operation results in less time expanded on that operation. This means there is more time to produce more products because it takes less time to produce. The available resources and process changes may also alter the learning curve and as the company pursues the learning curve to achieve cost savings volume must increase for the curve to exist. As production time goes on the amount of labor decrease is smaller than when production first started. As you can see from the analysis it took 3737.741 labor hours to produce the first 5 batches of sandals and only 6101.82 labor hours to produce 4 times as many sandals as the first batch.

C1. Recommend a staffing plan for the assignment of machine operators on a shift at the Shuzworld Shanghai plant that will increase cost effectiveness.

This staffing plan assignment will achieve the most efficient cost of $37 for the company.

Machine operator 1 will perform job 1. Machine operator 2 will perform job 2. Machine operator 3 will perform job 4 and machine operator 4 will perform job 3. This minimizes time and reduces company costs.

Justification

The assignment tool was selected to perform a cost effectiveness analysis for the 4 machines and the 4 jobs because it will determine which machine would perform which job and provide the lowest cost to the company. By performing this analysis on each job or machine the company will be able to minimize costs and the time to perform the job.

D. Outline short-term scheduling techniques and rules that can be used to achieve efficient movement of units through Shuzworld's production systems.

Short Term Scheduling

Effectiveness means faster movement of goods through the facility and faster delivery. This equates to lower costs for the company.

Scheduling Issues

Capacity plans

Are usually done on annual or quarter basis as equipment or facilities are purchased

or discarded

Aggregate planning

Makes decisions regarding subcontractors, people, facilities, equipment and inventory

Master schedule

Breaks down aggregate schedule and makes weekly schedule for specific product lines

or products