Shuzworld Case Study Evaluation Method

Decision Analysis

In this task, I will use Shuzworld case study as an operation consultant to provide recommendation after analyzing the problem, applying the appropriate decision analysis.

Task 1

Recommend how to improve the current workflow in the plant for the Rugged Wear Workboot.

We recommend that management organize this production process into 5 workstations with the appropriate tasks in each workstation to produce the Rugged Wear Workboot.

Station # Task Time

1 A 10

2 B, C 9

3 D 8

4 E, F, G 10

5 H 9



The 5 workstation layouts would provide a maximum cycle time of 10 minutes or less per station with a total time needed for each cycle of 46 minutes. Task A would start the cycle and take 10 minutes. Task B and C would follow and consume 9 minutes. Task D would follow and take 8 minutes. Task E, F and G would begin and take 10 minutes followed by the final step H and consume 9 minutes. Because workstations 2 and 4 contain multiple production processes these employees should be cross trained in performing these tasks to help keep the process moving and in fact over time could reduce the process time. This arrangement would be the most efficient and provide the greatest cost savings to the company for the production of the Workboot. This improved workflow achieved 100.00% efficiency with a 0% balance delay (Dougherty, 2003).

Justification

We imputed the performance times for each task, A through H and the sequence requirements into an assembly line balancing tool to perform an analysis to determine the proper number of stations and the most efficient workflow possible. The analysis tool calculated that the number of workstations needed was 5. Maximum station task time was 10 minutes and the time needed per cycle was 46 minutes. These calculations gave this process an efficiency of 100.00%.

This decision tool was selected to help achieve a higher efficiency of production and a possible reduction in production floor space. A properly balanced line will increase throughput and lower production costs (Owens, 2004).

Task 2

Analyze the initial and ongoing costs needed for the new sandal line being introduced. Management wants to know the hours and cost of labor each month to produce the schedule set forth.

We have determined that the Maui sandal 4 month production run will take a total of 20126.97423 labor hours and cost 20,121.71 at the labor rate of $1.08 per hour. Month 1 will require 3737.741 labor hours at a cost of $4,036.76. Month 2 will require 4775.66988 labor hours at a cost of $5,154.62. Month 3 will require 5511.74336 labor hours at a cost of $5,950.10 and month 4 will require 6101.82 labor hours at a cost of $6,589.97. As you can see the hours required for the production of sandals decrease as more sandals are produced. By continuing to produce this line your total labor costs will continue to decrease but at a slower rate as more sandals are produced. This information will help the company ...