ISCOM 305 Week 4

Individual Widget Production

Taylor Inc. manufactures widgets. There is a particular assembly line for Widget X. This assembly line includes the assembly of various raw materials, subassemblies, and packing of the finished widget. Currently, approximately 27% of the total labor time is utilized in walking by assembly line personnel to obtain the needed parts required to accomplish their assigned tasks. The average hourly cost, including all benefits, is $43 per hour. Seventeen people are required on the assembly line. Lifting containers that weigh approximately 42 pounds is required in several of the respective tasks. The current output of finished widgets is 208 per 8-hour shift. The company incurs an average of four workers compensation claims per year in back injuries due to lifting. An average claim equals $109,000 and the employee is out for an average of 280 hours. The injured worker must be replaced to sustain production. By improving the physical layout, productivity may be improved and workers comp claims reduced. Two layouts have been proposed.

Alternative One reduces wasted motion (walking) to 1% of total labor used on the assembly line. Physical lifting is reduced to no more then 12 pounds. Six people will be required on the assembly line. Productivity in finished goods per 8-hour shift will increase to 392. It is anticipated that workers comp claims will be reduced to .3 per year; however, a capital investment of $1.3 million is required in robotics and mobile storage carts. Useful life of the equipment is 7 years.

Alternative Two reduces wasted motion to 7% of total labor time while physical lifting is reduced to no more then 23 pounds. Nine people are required to staff the assembly line. Productivity will be 288 widgets per 8-shift. Workers comp claims are estimated at 1.9 per year. Capital investments are $967,000 with a useful life of 5 years for the equipment.

Evaluate Taylor Inc. operations-management processes to help them maximize labor productivity based on the scenario above. Management for Taylor Inc. would also like you to suggest alternative management techniques to improve productivity.

Write a 350- to 500-word executive summary that provides justification for the particular alternative you select. As part of your justification, provide

A cost-benefit matrix that compares the alternatives.

The effects the alternative will have on productivity.

Possible benefits of using a network strategy to streamline operational procedures.

Note: The lowest cost alternative may not be the best alternative.

Format your paper consistent with APA guidelines.

Learning Team Parker Earth Moving Company Consulting: Session 3

Parker Earth Moving Co. has experienced a reduction in their market share because of foreign competition.

Resource: Parker Earth Moving Company Consulting: Business Process Recommendations located on the student website under Week Four

Read the scenario and apply the current principles of system operations management to help Parker Earth Moving Co. be more competitive.

Create a 300- to 500-word memo that contains recommendations to improve the companys business process.

Address the following requirements:

Recommend ways to implement revised business practices and processes that will achieve profitability for Parker Earth Moving Co.

Describe how your recommended revised business practices and processes will affect the company.

Format your paper consistent with APA guidelines.

Discussion Questions

How might materials requirement planning (MRP) be applied to the surgery suite of a hospital, scheduling university classes, a chain of restaurants, and hotel renovations?

What are the strategic goals of supply chain management and how does procurement, transportation, and distribution affect these goals?

What is the purpose of sales and operations planning? How does the stop process enter into the planning process? What value is it to organizations?