- Published: November 16, 2021
- Updated: November 16, 2021
- University / College: Monash University
- Language: English
- Downloads: 38
The calculations used and information is presented in the documents following and outlining each recommendation. We find the company to be in positive financial standing, but with large areas of weakness that will require further investigation and action by management.
We will present the following recommendations:
- Reset Pricing Structure
- Use of Part-Time Labor
- Time ManagementPlan
- Demonstration Shows
- Product Line Expansion
Assumptions:
- No other changes (i. e. batch size, production size, labor, etc. )
- An increase in Net Income is preferred.
Price per Item Calculations:
- Batch Price-$21. 43
- Salary per Working Week-$625. 00
- Total Costs per Week-$646. 43
- Produced Pounds-39. 3 lbs.
Costs per item:
- Patterned Glass-$8. 22 each
- Paperweights-$14. 80 each
- Wrapped Tumblers-$8. 22 each
- Vases-$9. 87 each
Part-Time workers will be completing “ cold time” production activities, such as grinding, sanding, and polishing. They will also be packing and shipping, cleaning, clerical duties, and serving customers in storefront. Using part-time labor will allow for increased efficiency and allow products to be created and finished simultaneously, which allows for more production each day.
We suggest adding two part-time employees at $5/hour.
- Employee no. 1- Grinding, sanding, and polishing 30 hours per week x ($5. 00 per hour) = $150 per week
- Employee no. 2- Clerical work, customer service, cleaning 30 hours per week x ($5. 00 per hour) = $150 per week
Based on the recommendations made during the time management plan, we would like to increase the number of pieces produced, ultimately increasing profitability and reducing waste. Higher production would allow your backlog to catch up and allow for made-to-order products to be considered and produced. Time Management will help you be more aware of your productivity, keep you on task, and help you become the most productive that you can be. Time ismoney, as it relates to production. Giberson’s Plan of Weekly Production.
