Executive Summary:
The purpose of this executive summary is to evaluate and compare Alternative One and Alternative Two for improving the physical layout of the assembly line for Widget X in Taylor Inc. The goal is to increase productivity, reduce worker's compensation claims, and justify the selected alternative.
Cost-Benefit Matrix:
Alternative One:
- Capital investment: $1.3 million
- Useful life: 7 years
- Reduced wasted motion: 1% of total labor time
- Reduced physical lifting: no more than 12 pounds
- Staffing requirement: 6 people
- Productivity: 392 widgets per 8-hour shift
- Worker's comp claims: 0.3 per year
Alternative Two:
- Capital investment: $967,000
- Useful life: 5 years
- Reduced wasted motion: 7% of total labor time
- Reduced physical lifting: no more than 23 pounds
- Staffing requirement: 9 people
- Productivity: 288 widgets per 8-hour shift
- Worker's comp claims: 1.9 per year
To assess the cost-benefit of each alternative, we need to consider the initial investment, useful life, and expected outcomes. Alternative One requires a higher capital investment but offers greater reductions in wasted motion, physical lifting, and worker's comp claims. Alternative Two has a lower capital investment but offers fewer improvements in these areas.
Effect on Productivity:
Alternative One has the potential to significantly increase productivity with a projected output of 392 widgets per 8-hour shift. This is a substantial improvement compared to the current output of 208 widgets. The reduced walking time and improved layout will allow assembly line personnel to focus more on assembling the widgets rather than searching for parts. This increased productivity can lead to higher profits and improved customer satisfaction.
Possible Benefits of Using a Network Strategy:
Implementing a network strategy can further streamline operational procedures and enhance efficiency. By leveraging technology and automated systems, the assembly line can optimize the flow of materials, reduce bottlenecks, and minimize downtime. This will result in smoother operations, improved coordination, and faster production cycles.
Justification for Selected Alternative:
After careful consideration, Alternative One is the recommended choice for improving the assembly line for Widget X in Taylor Inc. Despite the higher initial investment, Alternative One offers significant improvements in productivity, reduction in worker's comp claims, and long-term cost savings. By decreasing wasted motion and implementing robotics and mobile storage carts, the assembly line will operate more efficiently, leading to higher output and reduced worker fatigue. The projected increase in productivity to 392 widgets per 8-hour shift is an appealing outcome. Additionally, the lower number of required staff can result in reduced labor costs.
In conclusion, Alternative One provides a strong cost-benefit ratio, promising higher productivity, reduced worker's comp claims, and long-term operational efficiency. By adopting a network strategy to further streamline operational procedures, Taylor Inc. can position itself for success in the widget manufacturing industry.