Welco Lumber Case Analysis

676 Words Jan 30th, 2013 3 Pages
Welco Lumber Company Case Analysis
Group 2 – Case 1
MBA 610-T301_2127_1
Bellevue University

Welco Lumber Company Case Analysis
Gene Denning, an employee of Welco Lumber Company, decided to run a study by videotaping a sample size of 365 logs being processed. However, actual data provided proved that it was a true sample size of only 362 logs, as data for logs # 30, 123, and 127 are missing from his report. He videotaped 3 operators, April, Sid, and Jim, marking the logs, how each log was broken down and the degree to which the cants were properly centered. Gene then did a comparison of what the cost was of the log in its current condition (actual value), to what would have been the correct value of the log if the cut had been
…show more content…
By evaluating the data below, we can rank the operators by overall production and by revenue loss. We have gathered that Sid is the most proficient in his overall cuts, followed by Jim, and then by April. Further, Sid has the lowest average loss of revenue per cut by a considerable margin over Jim and April. The most common error among operators is off-center cant. See Appendixes A-B for further charts pertaining to individual operator production. Also, see Appendix D for a chart with categorized error types by operator.

Operator | Large/Small Log | Count of Large/Small Log | Sum of Actual Value | Sum of Potential Value | Sum of Potential Gain | April | Large | 35 | $1,901.76 | $2,060.76 | $159.00 | | Small | 110 | $3,032.94 | $3,240.72 | $207.78 | Jim | Large | 13 | $784.52 | $865.31 | $80.79 | | Small | 76 | $1,781.05 | $1,908.14 | $127.09 | Sid | Large | 14 | $877.11 | $964.69 | $87.58 | | Small | 114 | $3,120.83 | $3,193.73 | $72.90 | Grand Total | | 362 | $11,498.21 | $12,233.35 | $735.14 |

Operators | Perfect Cuts | Average Loss | April | 39.31% | $2.53 | Jim | 35.96% | $2.34 | Sid | 71.88% | $1.25 |

Question 3: Does operator performance vary based on log size?
The sample of logs processed included many more small logs than large logs (see Appendix E). Keeping this limited sample size in mind, the company executes more perfect cuts on smaller

More about Welco Lumber Case Analysis