Widget Production Executive Summary: Taylor Inc.
Widget Production Executive Summary
University of Phoenix
ISCOM/305
Kate Bethea
June 6, 2011
Widget Production for Taylor Inc. Taylor Inc is looking to maximize the company’s productivity while minimizing worker’s compensation. As management starts to look at the options available to them, they need to evaluate their operation-management processes. The best option for breaking down the information and seeing what options are best a cost-benefit matrix is best follow. The cost-benefit matrix will show which alternative option will maximize productivity with lesser workers compensation claims.
Cost-benefit Matrix
| |Current |Alternative 1 |Alternative 2 |
|Number of Personnel |17 |6 |9 | …show more content…
|Labor Wage Per Shift |$5,848 |$2,064 |$3,096 |
|Labor Wage Per Year |$2,105,280 |$743,040 |$1,114,560 |
|Claims |4 |0.3 |1.9 |
|Claim Cost Per Year |$436,000 |$32,700 |$207,100 |
|Wage + Claims Cost |$2,541,280 |$775,740 |$1,321,660 |
|Capital Expenditure |0 |$1,300,000 |$967,000
University of Phoenix
ISCOM/305
Kate Bethea
June 6, 2011
Widget Production for Taylor Inc. Taylor Inc is looking to maximize the company’s productivity while minimizing worker’s compensation. As management starts to look at the options available to them, they need to evaluate their operation-management processes. The best option for breaking down the information and seeing what options are best a cost-benefit matrix is best follow. The cost-benefit matrix will show which alternative option will maximize productivity with lesser workers compensation claims.
Cost-benefit Matrix
| |Current |Alternative 1 |Alternative 2 |
|Number of Personnel |17 |6 |9 | …show more content…
|Labor Wage Per Shift |$5,848 |$2,064 |$3,096 |
|Labor Wage Per Year |$2,105,280 |$743,040 |$1,114,560 |
|Claims |4 |0.3 |1.9 |
|Claim Cost Per Year |$436,000 |$32,700 |$207,100 |
|Wage + Claims Cost |$2,541,280 |$775,740 |$1,321,660 |
|Capital Expenditure |0 |$1,300,000 |$967,000