2. Individual Assignment: Widget Production

• Evaluate a company that has personal issues that must be resolved. Read the following
scenario to evaluate Taylor Inc. operations-management processes to help them maximize
labor productivity. Management for Taylor Inc. would also like you to suggest alternative
management techniques to improve productivity.
Taylor Inc. manufactures widgets. There is a particular assembly line for Widget X. This
assembly line includes the assembly of various raw materials, subassemblies, and
packing of the finished widget. Currently, approximately 27% of the total labor time is
utilized in walking by assembly line personnel to obtain the needed parts required to
accomplish their assigned tasks. The average hourly cost, including all benefits, is $43
per hour. Seventeen people are required on the assembly line. Lifting containers that
weigh approximately 42 pounds is required in several of the respective tasks. The current
output of finished widgets is 208 per 8-hour shift. The company incurs an average of four
worker’s compensation claims per year in back injuries due to lifting. An average claim
equals $109,000 and the employee is out for an average of 280 hours. The injured
worker must be replaced to sustain production. By improving the physical layout,
productivity may be improved and worker’s comp claims reduced. Two layouts have been
proposed.

Alternative One reduces wasted motion (walking) to 1% of total labor used on the
assembly line. Physical lifting is reduced to no more then 12 pounds. Six people will be
required on the assembly line. Productivity in finished goods per 8-hour shift will increase
to 392. It is anticipated that worker’s comp claims will be reduced to .3 per year; however,
a capital investment of $1.3 million is required in robotics and mobile storage carts.
Useful life of the equipment is 7 years.

• Write a 350- to 500-word executive summary that provides justification for the particular
alternative you select. As part of your justification, provide
o a cost-benefit matrix that compares the alternatives.
o the effects the alternative will have on productivity.
o possible benefits of using a network strategy to streamline operational
procedures.
Note. The lowest cost alternative may not be the best alternative.
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To evaluate the different alternatives and justify the selection, we will need to consider the cost-benefit matrix, the effects on productivity, and the potential benefits of using a network strategy.

Cost-Benefit Matrix:
1. Alternative One: This alternative focuses on reducing wasted motion and physical lifting, requiring a capital investment of $1.3 million in robotics and mobile storage carts. The useful life of the equipment is 7 years. The anticipated reduction in worker's comp claims is 0.3 per year.
2. Alternative Two (not provided in the question): This alternative is not mentioned in the scenario, so we won't consider it in our evaluation.

Effects on Productivity:
1. Alternative One: By reducing wasted motion and physical lifting, the labor time utilized for these activities will be reduced to only 1% of the total labor used on the assembly line. This will significantly improve labor productivity. Additionally, by reducing the number of personnel required on the assembly line from 17 to 6, the company can optimize their workforce and potentially assign the remaining workers to other tasks or areas of the company.

Possible Benefits of Using a Network Strategy:
A network strategy involves streamlining operational procedures by implementing technology, such as robotics and mobile storage carts, to enhance productivity and efficiency. Here are some potential benefits:
1. Better coordination: With a network strategy, the company can better coordinate tasks and processes within the assembly line, reducing delays and improving the overall flow of production.
2. Improved quality control: By implementing robotics and automation, the company can improve the accuracy and consistency of the assembly process, reducing defects and ensuring higher quality finished products.
3. Real-time data: A network strategy can provide real-time data on the production process, allowing for better monitoring and timely decision-making to address any issues that may arise.
4. Reduced lead time: By streamlining operational procedures, the company can reduce lead time, enabling faster delivery of finished widgets to customers.
5. Cost savings: Although not mentioned in the scenario, implementing a network strategy can potentially result in cost savings in the long run through improved efficiency, reduced labor costs, and reduced worker's compensation claims.

In your executive summary, you can discuss the cost-benefit analysis, the effect on productivity, and the potential benefits of using a network strategy. Make sure to provide a justified recommendation for Alternative One based on these factors, while also considering any other relevant information or factors mentioned in the scenario.