L. E. S., Inc.
I. Problem What will the company do to meet its objectives regarding increasing the volume of production and its quality at a much lower cost?
II. Areas of Concern
1. L. E. S. Inc.
a. A large U.S. company engaged in the manufacture and sales of a wide range of electrical products;
b. The manufacturing operations are organized on a divisional basis: power and transmission, electrical components, and small appliances; and,
c. There are 13 supervisors, 4 of which have more than 2 years in service and 2 of these have supervisory training.
2. Martin Collins
a. The Manufacturing Manager for six years;
b. An MBA, 44 years of age and responsible for Worcester Plant; and,
c. Reports to the divisional vice president in
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This will jeopardize quality of the products since operators may have do not have enough expertise in running the production like their existing employees;
b. If in case these operators do not have enough skills or experience, It is hard to train to become efficient when the supervisors themselves did not have training and are considered not that efficient as expected; and,
c. This is an additional cost.
3. To reorganize existing resources.
Advantages:
a. Division of labor will attend immediate / day-to-day concerns and long-term development;
b. This will create sense of direction for the company and will establish organized procedures on their daily productions or operations;
c. There will be a focus on quality and volume of output;
d. Everything will be documented so that when there will be problems, the next person who will deal the problem will be aware of it.
Disadvantage:
a. Adjusting period for everyone will take place which will somehow affect production.
IV. Recommendation Given the alternatives and the evaluations, it is best if the company will reorganize its existing resources. In this way, procedures will be organized and problems with their corresponding solutions will be documented. It will be easier both for the supervisors and operators to act when they will encounter the same problem. Furthermore, the management will know who will be responsible for the delay of production or the reason
This paper will provide an analysis of 2 production scenarios. We will calculate costs associated with running a production facility. Furthermore, the analysis will be used to provide a basic understanding of how changes in staffing and productivity impact profit and loss.
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