Management of Organizations
The current production process that Thicketwood Ltd is utilizing can no longer keep with the demand of custom kitchen cabinets. Management must implement a new step to the production line to increase efficiency; however, they must also maintain quality as the customers that are purchasing these cabinets expect top quality for the amount of money they are paying.
In the Thicketwood Ltd case there are a few problems and issues that need to be addressed immediately in order to keep up with demand. The current process that involves strictly human labor is no longer efficient as the demand for cabinets continues to…show more content…
As presented in table 1.1, the line is unbalanced and is not meeting the quantity demanded. The CNC router can rout 1 part every 12 minutes and there are 4 parts that need to be routed so this step would now take 48 minutes as oppose to 96 minutes. The CNC router only requires 1 operator who would earn $20.00 per hour resulting in an annually salary of $40,000. If the company were to implement the CNC router, it would allow other employees to be moved around but would also eliminate some jobs. Table 1.2 represents the production process with the CNC router.
Table 1.2 | # of employees | Efficiency | Per Shift | Per Year | Step 1(24 minutes) | 1 | 100%90% | 2018 | 5,0004,500 | Step 2(36 minutes) | 2 | 100%90% | 13.3612.024 | 3,3403,006 | Step 3(48 minutes) | 1 | 100%90% | 109 | 2,5002,250 | Step 4(45 minutes) | 2 | 100%90% | 10.649.576 | 2,6602,394 | Step 5(40 minutes) | 1 | 100%90% | 1210.8 | 3,0002,700 | | Total: 7 | | | |
Table 1.2 represents 7 employees each working 8 hour shifts 5 shifts a