Why Unionization Is The Minimum Profit Gained

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.

To calculate optimal pricing I used MC outlined in the case as based on volume of drives produced weekly. Fixed costs of plant and equipment were not included in this analysis although are later evaluated for breakeven time frame.

Rough approximation of the machine service rate μ based on the statistics from first 5 days:

2. It can be determined that it will take approximately 20,126 hours at a cost of $20,121.71, with the given labor rate of $1.08 per hour, for the 4 month production run, with the breakdown of each month as below:

The first phase of our solution is concerned with improving the current situation and overcoming the shortfall in a fast and inexpensive way. According to exhibit "current situation" we can identify two bottlenecks in our current production process, "Add Paste to Cup" and "Inspect Carbon Rods". Those are below the necessary capacity of 540 units/min. To overcome this, we suggest adding one additional machine ("Add Paste to Cup") from the factory in Guarulhos to reach a overall capacity of 540 units/min and engage two more persons, one to operate the additional machine and one in the "Inspect Carbon Rods"-operation (exhibit alternative II).

12.5 hours per week for 38 weeks of the year to ensure that they receive up

10 hours a day from Monday to Friday and six and a half on Saturday.

Maxfield Turner has options available to him and he now has figures to make an informed decision. He can choose to install the inspection station which shows him the incremental cost and profit associated with that decision. He may also opt to

The job you are being offered is a full-time position, meaning you will be expected to work a minimum of 40 hours per week. It is a salaried position, with an annual salary of $34,000, as well annual merit increases earned based on job performance.

Hours of operation (days and times): Mon- 8AM-4PM, Tues- 9:30AM-5:30PM, Wed- 11AM-7PM, Thurs- 9:30AM-5:30PM, Fri- 8AM-3:30PM, Closed on Saturday’s and Sunday’s.

Costs. The additional cost to the current process is (40,000 – 8,406) = $31,594. That means that during those 20 days the benefits mentioned above would directly offset $8,406 of $40,000 investments. Assuming the same level of supply (16,000 bbls/day), the total investment would be returned in (40,000/8,406)*20=95 days. It is difficult to calculate the financial benefits from the elimination of queues and the lower dependence on seasonal workers, though we must not forget that those are issues

ML had developed a policy of selling manual machines and renting automatic machines. Manual machines did not cost much, did not require service, and could be modified to attach different fasteners inexpensively. Automatic machines were rented on an annual basis because they would have been more expensive to sell and it provided annual income to ML. However, about 700 of the rented machines were returned each year. During the time that machines were in inventory, ML would modify the machines to attach different fasteners. This was expensive with an average cost per modification of $2000. If all 700 machines were modified during a given year this would have cost $1.4 million per year. It was also industry practice to provide preventative maintenance and

available. You can also expect to work an average of 10 hours per week. Other entry-

This position in closed on 27th October. The price of wheat futures has risen from $5.08 to $ 5.11 during the period. This price rise translated into positive gains for the bakery as it indicated rise in the price of the underlying commodity. The management has remained successful in hedging its price risk by taking long position in wheat futures.

* There are 24 machines which are working on a standard (non-overtime) week of 105 hours. Thus, there are 2520(24 X 105) machine hours