I. Employee Production Rate
The manager of a plant has been instructed to hire and train additional employees to manufacture a new product. She must hire a sufficient number of new employees so that within 30 days they will be producing 2500 units of the product each day.
Because a new employee must learn an assigned task, production will increase with training. Suppose that research on similar projects indicates that production increases with training according to the learning curve, so that for the average employee, the rate of production per day is given by
where N is the number of units produced per day after t days of training and a and b are constants that depend on the project. Because of experience with a similar project, the manager expects the rate for this project to be
The manager tested her training program with 5 employees and learned that the average employee could produce 11 units per day after 5 days of training. On the basis of this information, she must decide how many employees to hire and begin to train so that a month from now they will be producing 2500 units of the product per day. She estimates that it will take her 10 days to hire the employees, and thus she will have 15 days remaining to train them. She also expects a 10% attrition rate during this period.
How many employees would you advise the plant manager to hire? Check your advice by answering the following questions.
Find the number of units the average employee can produce after 15 days of training. How many such employees would be needed to maintain a production rate of 2500 units per day?
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