In: Accounting
You manage an assembly line operation that manufactures automobile steering wheels. Your current production schedule is 5 days per week, 2 eight hour shifts per day. The new demand forecast has added a new customer and requires for us to increase production by 10% for the next 5 weeks. Give to me at least 2 scheduling options for meeting the demand.
Given that there are two shofts of 8 hrs per day for 5 days in a week,
That means currentry we managing that 80 hrs per week and for 5 weeks it will be 400 (5*80) man hours.
Given that there is a raise in 10 % for the 5 weeks i,e. it requires 40 Hours (based on base hours we took 400* 10%)
In case of there is no scarcity of man power- If temperory workers are available then it is advisable to take temperory workmens help.
but in case there is a Scarcity then, we have following options,
1. Increase the time of work by way of overtime- as overtime workers get more pay than as usual, so they will accept it,
2. if we dont want to pay more, then there is an option in shift management i.e. as there is 2 shifts of 8 hrs it comes 16 hrs per day that means there is an idle time of 8 hrs, so if we use workers as redused shift hrs to 6 hrs and there is 4 shifts per day, like wise you can improve the availability of employees and this will reduse the set up costs indeed.