In-house Daycare Center Proposal

Presented to Ms. Fluellen Bautista, VP Operations

Company’s Problem
NET LOSS for the year ended, June 30, 2017
(figures are in thousands)
Company’s Problem
Root Cause Analysis
● Quotas were not met ● Defective outputs
○ High employee resignation rate ○ Some employees bring their child
○ Unexpected absences to the workplace causing chaos.
○ Chronic absenteeism
○ Excessive tardiness
○ Leaving without permission
○ Not observing duty hours
P1,500,000
Which can be recovered within 3-4 months.
Daycare Floor Plan
Cost of goods manufactured section of the income statement:

Actual:
Inventory Used 3,547,561
Salaries Expense 1,200,000
Expenses from the daycare 0
Other Expenses 1,456,632
Cost of goods manufactured 6,204,193 (100,000 units)
Cost per unit 62.04
Potential:

Inventory used 4,653,980

Salaries Expense 1,200,000
Expenses from the daycare 216,000
Other Expenses 1,456,632
Cost of goods manufactured 7,526,612 (132,000)
Cost per unit 57.01
(40% increase in production of 80% of the workforce)
Projected Results
● Company Benefits: ● Employee Benefits:
○ Lower absenteeism and ○ Boost employee morale
turnover ○ Convenient
○ Higher return than cost ○ Offers emotional security
○ Improve productivity and
efficiency
○ Better reputation
○ Helps retain and attract a wider
variety of applicants
Thanks!