OPERATIONS MANAGEMENT GROUP ASSIGNMENT

CASE ANALYSIS – “DON’T BOTHER ME, I CAN’T COPE”

SECTION – “A”

GROUP MEMBERS INVOLVED :

RAHUL R KRISHNA 22PGDM039

RAINA ROY 22PGDM040
RIMI GHOSH 22PGDM041
RITANKAR MAITY 22PGDM042
RIYA MUKUND HANDE 22PGDM043
Case Analysis :
The case involves creating a strategy to fulfil a fresh order that a small assembly shop
received. Both Line A and Line B's capacities must be increased in accordance with the
order.
Line A: This line's daily capacity must be increased from 315 units to 420 units. It has 7
employees. The hourly rate for regular employees is Rs. 18 and the rate for overtime is Rs.
30. There are 16 distinct tasks in the assembly, each with a clear order of precedence. There
is no rejection rate as a result of overtime. Sane, Line A's manager, has demanded two more
employees in order to meet the 33% increase in production needs.

Line B: The new order necessitates an increase in this line's production capacity to 210 units
per day. It has two employees. Fatigue causes a 1% rejection rate on this line when overtime
is used. A rejected unit costs Rs. 420. Uma, the Line B supervisor, needs 2 more employees
to help with the growing demand.
The store is open for 8 hours each day. But this also includes four 15-minute rest breaks. On
both lines, a 2-hour overtime is possible.

In order to meet the increased demand, it will be difficult to hire more than three workers
quickly, as Shantha, the owner, has stated. However, both supervisors have asked for two
additional workers. Additionally, employee training comes at a high cost of Rs. 6,000.
Additionally, it is not entirely clear why a 100% workforce increase is required to produce
50% more on Line B, but only a 30% workforce increase is required to handle a 33% increase
in workload on Line A.
The analysis below examines the process flow diagram:
Solution to problem raised in the given Case scenario :

Only three employees could be hired by Shanta, but each assembly line required an additional
two employees, for a total of four. However, we can only hire 3 people due to budgetary
restrictions, so we'll assume more overtime. Which sub assembly actually needs two more
workers must be determined. The sub assembly with the lowest labour cost is the most
feasible in this case as we are considering the possibility of adding more workers in both sub-
assemblies.
On analysis of the given case, as described in subsequent sections following is
the recommendations.

Line A: Solution 1 is suitable

No. of Per Unit Per Day Regular No. of Regula Over Wages / Day +
Units Contribu Contributio wages workers r hours Time Overtime
Produced / tion (Rs) n (Rs) (Rs) Hour
Day s

420 30 12600 18 9 8 0 1296

(Desired)
420 30 12600 18 7 8 2 1428
(Desired)
315 (Old) 30 9450 18 7 8 0 1008

Solution 1: This recommendation calls for the hiring of two additional resources, with a
training expense of Rs. 12000 and a daily wage of Rs. 1296 (18*9*8).

Solution 2: This option maintains 7 employees who receive 2 hours of daily overtime. In this
instance, the daily differential wage, including overtime, is Rs. 132 (18*7*8 + 2*30*7 =
1428; 1428-1296 = 132)

As we know, that the assembly with the lowest labour cost is the most feasible, therefore
Solution 1 should be preferred.

Line B: Solution 1 is suitable

No. of Per Unit Per Day Regular No. of Regular Over Wages /
Units Contributio Contributio wages workers hours Time Day +
Produced n (Rs) n (Rs) (Rs) Hours Overtime
/ Day

210 30 6300 18 3 8 1 529.2

(Desired)
210 30 6300 18 4 8 0 576
(Desired)
140 (Old) 30 4200 18 2 8 0 288
Solution 1: This advice necessitates the hiring of an additional resource, at a cost of Rs.
6,000 for training. In this instance, the operation's efficiency is kept at 100% but required
overtime for 1 employee is for 1 hour. (taking into account overtime pay and a 1% rejection
rate for fatigue.)

Solution 2: This suggestion necessitates the hiring of two extra personnel, at a cost of Rs.
12000 for training. However, wages are higher than solution 1 at Rs. 576.

In the case Line B, Solution 1 has the lowest labour cost therefore it should be preferred.