Widget Production

Executive Summary: Widget Production

February 7, 2012

ISCOM/305

Executive Summary

Widget X Production

Taylor Incorporated has alternatives to improve their operational productivity. An analysis of three different options is provided and justification for the selection that will be made. Making a comparison of the options will help to explain how to select the best option. Our goal is to get the most out of production and save Taylor Inc. money in the process.

Cost Benefit Matrix

Listed below is a cost-benefit matrix that will give a comparison of the options available to Taylor Inc. Listed are the current production method, alternative one, and alternative two.

Cost analysis

Wages Current Alternative one Alternative two

1,520,480 536,640 804,960 (17/89,440) (6/89,440) (9/89,440)

Claims 436,000 305,200 207,100

(4/109,000) (2.8/109,000) (1.9/109,000)

Capital Invst. None 185,714 193,400

(1,300,000/7) (967,000/5)

Lost labor 24,148 894 17,888

Total 1,980,628 1,028,448 1,223,348

Variables 54,080 101,920 74,880

Incoming cash 5,408,000 10,192,000 7,488,000

(100 per unit)

The conclusion made is that alternative one is the best choice because of productivity and total cost. Alternative one will provide the best benefit to cost ratio. A large deciding factor was the amount of time that would be saved because of lost labor. Alternative one had the lowest amount of wasted labor, compensation claims, and lower amount in total wages paid. After comparing the elements, alternative one is the best solution for Taylor Incorporated. The productivity is the highest using alternative one with less waste than the other alternatives. Another factor for choosing alternative one was the factor that less compensation claims would be filed and less injuries would be work related.

One of the benefits from streamlining Taylor Inc.'s procedures would be less workers are used to perform the work. The time of the production would be less because of the streamlining of the operational procedures. A more simplified operational procedure is much more efficient and less costly for the company making the profit much better.

It is recommended that