Operations Decision



Operation Decision

Introduction

The goal of every organization is to maximize the profit. As a newly hired managing consultant of a firm, my emphasis will be on the best tactics of the strategic implementation that can be manageable and high performing. An extraordinary arrangement of allocation of resources is very important to single out as a key determinant in how progressing operation methodologies and process will turnout. I understand that as a delegated advisor or a consultant, directing the customer of administration in a bearing of settling on organizational decisions which are information driven is the best chase. The fixed cost of the company should be adjusted so that the inclusion of the budget plan can be made easily and possible. This plan will support high revenue and will minimize the unnecessary spending in those areas where there is no need for performing activities.

Various clear results are displayed in exertion to advertise long-term change in the process of improvement. These results anxiety having month to month staff trainings for improving the quality and the nature that will offer approach to explanatory understanding required in challenging matters or problems and tackling them without alluding to a specific specialist as a first step. Having a sense of strategic direction, will control the amount or the number of employed workers and the cost of the capital budget of the firm, for example manufacturing components or the cost variables of priority.

In order to continue the operation the calculation are as follows

The number of workers is 100 and they are paid 70 per day

Therefore the employee wage rate per day is 100*70 = 7000

7000*30 = 210000 per month.

Other variable inputs cost = 2000 per day

2000*30 = 60,000 per month

The marginal cost of the last unit is 30 and units produced were 6000

Total units * per unit cost

i.e. 6000 * 30 = 180000 spends on the production output.

Monthly calculation

Employees wage rate = (210000)

Other variable Interest cost = (60000)

Total spent cost (expense) = (270000)

The revenue is 180000

The current expense that the firm is spending is 90000 over the given budget to work with.

Monthly Tab Discovery

After the careful review of the circumstances as a managing consultant the following can be recommended.

Savings = 1333.34 *30 =4000.20 per month

The spending that can be avoided is 2000 * 30 = 60000

Discussion

Question # 1

Briefly describe the details of the fictitious business that you created for this assignment?

Answer.

The current utilization of workers is 100 that work for 20 days per month and the wage rate per day is 70. The units produced are 6000 per month while the variable cost is 2000 per day. The fixed cost is not disclosed and in this it is clearly mentioned that the fixed cost is high and therefore the total cost of the firm exceeds the total revenue of the firm. The price of the output of the firm is 32 while the marginal cost of the last unit is 30.

Question # 2.

Assess the current environmental scan factors that are relevant to the decision making ...