Widget Production Paper

Widget Production Paper

Widget Production Paper

Employees at Taylor Inc. spend 27% of their total labor time in walking by assembly lines to acquire parts needed in the production of their tasks. They are also required to lift containers that weigh an average of 42 pounds. A total of 17 employees are required on the assembly lines. Employees average hourly cost is $43.00 per hour with a current output of 208 finished products per each 8 hour shift. Taylor Inc. has a current situation where they incur in an average of 4 workers compensation claims per year in back injuries due to lifting. Each claim costs the company an average of $109,000 per employee, not to mention the fact that the employee is out of work for an average of 280 hours and they have to be replaced to maintain production. Throughout this essay I will discuss one of two options I chose as a solution for Taylor Inc.

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In order for Taylor Inc. to improve productivity and at the same time have a cost effective alternative, their best choice is alternative one. Although alternative one is not the cheapest one in the long run it is cost effective. Alternative one requires a capital investment of $1,300,000.00 which is $333,000.00 more expensive than alternative two but increases production to 392 widgets per eight hour shift. It requires employees to lift an average no greater than 12 lbs. and requires 26% less wasted motion.

The benefit of using this streamline operational procedure is that alternative one requires only six employees in the assembly line which saves Taylor Inc. $3,784.00 per employee in labor wages per eight hour shifts and this alternative estimates workers compensation claims to decrease to 0.3 per year. A comparison...