JGT2 TASK 1 Assignment

2172 Words Apr 21st, 2015 9 Pages

Decision Analysis
Theo Adams
Western Governors University
MBA Program



Shuzworld Inc. is a family company that is positioning itself to grow in the competitive footwear industry. They currently operate three manufacturing facilities in China; the main plant is in Shanghai it has two others in Fuzhou and Hanghou. The company has some operational challenges which need addressing in their manufacturing plants and their newly hired associate has been assigned to address these issues.

Part A: Steel Toe Work Boots

Concerns with the operational efficiency of the workflow of the assembly line for the steel toe work boots leads to an analysis of its current process. The assembly schedule
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In previous projects the learning curve has been 80%. The learning curve for principle is based upon a doubling of production. This means every time that the production doubles, there is a cut in the time to perform each task which impacts the time and cost of the production. This means by the fourth unit it will take 80% of the time of the second and the eighth unit will take
80% of the time of the fourth unit.


Managements questions are what should be the schedule of production hours by month should be during months one through four and what the direct labor hours budget for those months should be as well. This is ascertained by taking the on hand data using the learning curve analysis tool in order to give the desired information. The learning curve tool can help the management team get an idea of the labor hours and production costs for the Maui sandals and how they will change over the first four months of production. This is based upon the employees getting better performing the assigned tasks each day of operation. The tool provides realistic views of costs and the labor hours this can help create an appropriate budget and validate that the product can be efficiently produced. In the Shuzworld scenario the Learning Curve is being used internally to establish costs and budgets for the project. The goal is to act according to the curve.
The steeper the curve the more aggresively they can respond. It can allow them to

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