Decision Analysis Task 1

Topics: Employment, Book of Job, Costs Pages: 5 (1166 words) Published: December 10, 2014
A. Improving the Current Workflow
To improve the current workflow in the plant Shuzworld needs change the facility layout so that production is more efficient. In order to do this they need to balance the amount of time spent at each workstation so that each employee is maximizing their time. According to the information provided 48 units of work boots are required for each 8-hour shift. Each shift totals 480 minutes divided by 48 units is 10 minutes, which is the maximum amount of time each task (workstation) should take in order to meet production goals. Currently Shuzworld uses 8 workstations as follows: Task A requires 10 minutes, task B requires 6 minutes, task C requires 3 minutes, task D requires 8 minutes, task E requires 3 minutes, task F requires 4 minutes, task G requires 3 minutes, and task H requires 9 minutes. The predecessors for each task are also listed as follows: B and C follow A, D follows B and C, E and F follows D, G follows E and F, and H follows G. Based upon the previous calculation of a maximum of 10 minutes at each workstation Shuzworld should reorganize their workstations to come as close to the 10 minutes as possible while still being efficient. I found that the best way to organize the assembly line is to have 5 workstations. Workstation 1 includes task A and will take 10 minutes, workstation 2 includes tasks B and C and will take 9 minutes, workstation 3 includes task D and will take 8 minutes, workstation 4 includes tasks E, F, and G and will take 10 minutes, and workstation 5 includes task H and will take 9 minutes. This layout was determined using the assembly line balancing tool. The assembly line balancing tool placed the tasks into 5 workstations instead of 8 creating a much higher efficiency rate at each workstation. Each station gets up to 10 minutes so the efficiency for workstation 1 is 100%, workstation 2 is 90%, workstation 3 is 80%, workstation 4 is 100%, and workstation 5 is 90%. The overall efficiency rate is 92%. Tasks B and C were grouped together because they are both only dependent upon task A being completed, tasks E, F, and G are grouped together because tasks E and F are both dependent upon task D being completed and task G is dependent upon tasks E and F being completed. Grouping these smaller tasks together helped to maximize workstation time. Having only 5 workstations also allows for less down time between tasks and allows for employees to cross train on other workstation tasks. Having the ability to cross train will allow for employees to step in and help if a workstation gets backed up or if someone is unable to come to work. B. Costs of New Sandal Line

In order to estimate the costs of producing the new sandal line I analyzed a variety of information. According to the provided information Shuzworld has a learning curve of 80% and the production expectations for the new line are aggressive. The sandals are produced in batches of 10,000 and in the first month 5 batches will be produced with 1000 labor hours at $1.08 per hour. Production will then increase by 5 batches each month for the next 3 months. To predict the costs of this production goal I used the coefficient approach. To produce the 5 batches required in the 1st month it will take approximately 3737 labor hours for a cost of $4035.96. Based upon the learning curve it will take approximately 4773 labor hours to produce 10 batches of sandals in month 2, which makes the labor cost $5154.84. Month 3 will require approximately 5509 for 15 batches for a labor cost of $5049.72. Finally month 4 will require approximately 6102 labor hours for 20 batches for a labor cost of $6590.16. All of these totals are based upon the projections provided by Hetty Tarbox of Shuzworld. Continued production of the Maui sandal based upon the learning curve reflects a lower cost per unit, which will allow Shuzworld to effectively price the final product. Based upon the analysis provided above in...
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