Production schedule

Jul-Sep Oct-Dec Jan-Mar Apr-Jun

Q1 Q2 Q3 Q4 Total
101 5551 3629 4296 9180 22656
102 5551 3629 4296 9180 22656
103 16653 13131 8400 29784 67968
Total 27755 20389 16992 48144 113280

Wage rate
$ per hr
standard 6.5
overtime 9.75
Fringe benefits 0.975
Standard hr 8
avg wage/ day 59.8 (standard + fringe)

No. of employees 21
Prouctivity 82%
Possible increase in productivity 4%

Manhours required for production @ 82% productivity

Q1 Q2 Q3 Q4 Total
101 2234 1460 1729 3694 9118
102 2234 1460 1729 3694 9118
103 8123 6405 4098 14529 33155
Total manhours 12591 9326 7555 21918 51390

Manhours available Q1 Q2 Q3 Q4 Total

No. of days 92 92 90 91 365
Working hours 15456 15456 15120 15288 61320
Net of absenteeism 15070 15301 14893 14982 60246

Q1. In Quarter 1, 2, 3 Manhours available > Manhours required

But in Q4, Manhours available are 14982 while Manhours required are 21918
Even after increasing Q4 productivity to 86%, deficiency of manhours is 20898 - 14982 = 5916 hours

1 Pay overtime wage Extra payment=

Extra workers
2 Employ extra workers required=
Cost of extra workers=
Q2. Highest surplus of manpower is in Quarter 3 7338 manhours
Company should consider bringing some production from Quarter 4
Benefit is that it will utilize workers more efficiently. Cost involved include higher cost of inventory storage

Q3. The effect of productivity on staffing levels

Manhour surplus productivity

5915.89953488372 0.86
6935.32097560976 0.82

The manpower surplus has decreased with increasing productivity therefore the staffing is more judioucly utilized

Therefore, to utilize this potential the number of employees to be added to the labourforce are:
8.29207716820437
8 employees would be required to tap into this oppurtunity due to increased productivity
Overall manhour shortage 11246.29
Total number of employees required to utilize this are: 3.851470532 = 4 employees
Therefore we see that the overall productivity increase leads to the same production capabillity in lesser manhours
Q4. Shifts in production
As we can clearly see that except for Q4 all the other Quarters have a shortage of manhours and therefore are unde
 Standard Labor Hours

Hours/ unit
101 0.33
102 0.33
103 0.40

Max units in a quarter

Model No. of units Total hours
101 9200 3036
102 9200 3036
103 30000 12000
18072

Time loss
% actual hrs
Quarter lost
1 2.50%
2 1.00%
3 1.50%
4 2.00%

Manhours required for production @ 86% productivity

Q4 with 86% productivity Q1 Q2 Q3 Q4
3523 101 2130 1393 1648 3523
3523 102 2130 1393 1648 3523
13853 103 7746 6107 3907 13853
20898 Total manhours 12006 8892 7204 20898

d are 21918
urs is 20898 - 14982 = 5916 hours

$57,681.00

8.29221798609554
$43,534.40
 manhours

nclude higher cost of inventory storage

herefore the staffing is more judioucly utilized

dded to the labourforce are:

s oppurtunity due to increased productivity

= 4 employees
same production capabillity in lesser manhours.

a shortage of manhours and therefore are understaffed as heavy production takes place in Q4, leading to heavy overtime charges. Theref
Total
8694
8694
31613
49000
overtime charges. Therefore we recommend to distribute this production to other quarters to make the most of the manhours available du
t of the manhours available due to production disparity present.