Professional Documents
Culture Documents
Planning Steps
Calculate the existing available skilled and unskilled
workers
Case states that company has sufficient workers to make the annual forecast over 200 production days (2010)-level So calculate average need for each product at each skill level
(March-August) Determine the total cost of fulfilling demand for each option by figuring cost of:
Overtime Use of subcontractors Hiring and Training workers Cost of Design Change Cost of Carrying Inventory
Annual Forecast with 200 production days in 2010 Workers work 10 hour days Capacity to produce:
Mins/item
Skille d Unskilled CloudChair AlStrong GreenComfort 2 12.8 13 9 28 31
Unskilled ? ? ?
Staffing =
labor time * Daily Capacity/ (daily hours/worker *yield) Example: Cloud Chair w/ Skilled (2 min/item)(hr/60min)*(2621.4 ch/day)/ (10 hours/day/worker)*.95 = 9.2 workers
Staffing = labor time * Daily Demand/ (yield) Example: Cloud Chair w/ Skilled (2min/item)(hr/60min)*(2500 ch/day)/.95 = 87.72 worker hours/day Or (per month @ 18 days) = 87.72 worker hours/day *18 =1578.9 hours
Mins/item
Un Skilled skilled CloudChair AlStrong GreenComfort 2 12.8 13 9 28 31
Monthly
Unskilled ? ? ?
45,000 27,000 22,680 18 12,815 13,140 325 (2) 32,703 33,480 777 (4)
months gives: 13 additional skilled & 40 unskilled Or dont hire until April and Use excess worker capacity to build inventory in March then average the remaining demand over 5 months.
Early hiring in March with carrying extra inventory Hiring in April with carrying extra inventory Hiring and Training in March Hire all workers March 1 and use overtime for some Hire all needed workers in April Hire unskilled workers to train in March and start extra production in April
Change in Design