Wgu Decision Analysis Task 1
Decision Analysis JGT Task 1
Melissa Brooks
Western Governors University
November 16, 2014
A Workflow
Crown shoes were founded in 1965, and then changed its name to Shuzworld in 1995. It is an established company with stores in 50 stores nationwide. It controls three shoe manufacturing plants in China where they produce their own specialty shoe lines. Shuzworld is experiencing operational challenges in their production factory in Shanghai China. It is important to the success of the China production facilities to provide sound management principles and decision analysis to determine the best options for solving workflow concerns. After meeting with Alistair WU, operating director and Catherine Pang, line manager the assembly …show more content…
Cost Analysis
From recent market research, Shuzworld has decided to launch a new product line in California and southwest United States called the Maui Sandal. But first, Shuzworld must determine if the new product line will be profitable to the company before starting production. Hetty Tarbox, Shuzworld’s market research manager for casual footwear, anticipates the Maui Sandal to be very well received and has geared up to produce batches of 10,000. Catharine Pang predicts the first batch will take 1,000 labor hours to produce based on prior experience with previous new lines of footwear. The labor costs on a hourly rate average of $1.08 in U.S. dollars. After analyzing the data from prior new product launches, the employee learning curve for is typically about 80%.
Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated. As firms and employees perform a task over and over, they learn how to perform more efficiently. This means that task times and costs decrease. (Heizer & Render, 2011, p. 770).
B1. …show more content…
Cost Analysis Output
I used the Excel OM Learning Curve worksheet attached to show how the costs of the new sandals will decrease over time as the production of the product increases. This is due to the workers becoming more productive as they repeat the work process involved in making this sandal.
B2a. Cost Analysis
Melissa Brooks
Western Governors University
November 16, 2014
A Workflow
Crown shoes were founded in 1965, and then changed its name to Shuzworld in 1995. It is an established company with stores in 50 stores nationwide. It controls three shoe manufacturing plants in China where they produce their own specialty shoe lines. Shuzworld is experiencing operational challenges in their production factory in Shanghai China. It is important to the success of the China production facilities to provide sound management principles and decision analysis to determine the best options for solving workflow concerns. After meeting with Alistair WU, operating director and Catherine Pang, line manager the assembly …show more content…
Cost Analysis
From recent market research, Shuzworld has decided to launch a new product line in California and southwest United States called the Maui Sandal. But first, Shuzworld must determine if the new product line will be profitable to the company before starting production. Hetty Tarbox, Shuzworld’s market research manager for casual footwear, anticipates the Maui Sandal to be very well received and has geared up to produce batches of 10,000. Catharine Pang predicts the first batch will take 1,000 labor hours to produce based on prior experience with previous new lines of footwear. The labor costs on a hourly rate average of $1.08 in U.S. dollars. After analyzing the data from prior new product launches, the employee learning curve for is typically about 80%.
Learning curves are based on the premise that people and organizations become better at their tasks as the tasks are repeated. As firms and employees perform a task over and over, they learn how to perform more efficiently. This means that task times and costs decrease. (Heizer & Render, 2011, p. 770).
B1. …show more content…
Cost Analysis Output
I used the Excel OM Learning Curve worksheet attached to show how the costs of the new sandals will decrease over time as the production of the product increases. This is due to the workers becoming more productive as they repeat the work process involved in making this sandal.
B2a. Cost Analysis