The Advantage of the Network Diagram - Assignment Example

Name: Lecturer: Course name: Course code: Date: Question A Recommendation on improving the current workflow in the plant The network diagram below depict that, an ideal approach to improve the workflow, is to execute project A,B,D,E, and H since, the project takes the shortest time to completion with lowest cost. In this regard, the company will ensure that only ideal project are first implemented consequently leading to shortest time on project completion with lowest cost leading to enhanced reported net profit. other factors that would lead to improvement of workflow in the plant, is to ensure that staff are assigned to project with the highest return, low production and with shortest time in order to capitalize on the maximum returns due to limiting factors in the production line such as limited labor force. Activity Activity time Activity Cost Early Start Early Finish Late Start Late Finish Slack Project 39 A 10 0 0 10 0 10 0 B 6 0 10 16 10 16 0 C 3 0 10 13 36 39 26 D 8 0 16 24 16 24 0 E 3 0 24 27 24 27 0 F 4 0 24 28 35 39 11 G 3 0 27 30 27 30 0 H 9 0 30 39 30 39 0 A1a.Justicastion The network diagram commands that the project with the shortest time to completion and with shortest cost must be executed first since; it will ensure that Schuzworld realizes net profit from the investment, network diagram is an ideal decision tool since, it is a cost effective tool and the result generated can be fully relied upon in making Managerial decision making. The above table analysis therefore provides an ideal combination of project to be executed by Schuzwold in order to take advantage of the least available resource, staffing resource and at the same time maximize the reported net profit to the company. From the above program evaluation and review techniques, it can be depicted that, an ideal project activity to be employed is project A, B, D ,E and H since, the project take the shortest time to completion with a slack variable of zero in all the project. The advantage of using network diagram Managerial decision making The advantage of network diagram is that, it is a managerial tool that is used for making managerial decision since; the tool encourages the project managers to plan of the prospect as well as the present business situation and providing an efficient method of allocating the resource to that project with the shortest time possible to completion and with minimal cost since, the tool progressively manages the timeline as well as the program hence the production efficiency will be enhanced and minimizes the uncertainty and enhances the chances of meeting the deadline. Creation of production efficiency The tool ensures that the resources are ascertained in the process of planning. An ideal schedule for carrying the activities is ascertained and determines the timeline before the Initial work is started. An efficient resource allocation is eminent so that every activities and production line has proper resource when required. Comprehending the interdependent jobs might lead t probable minimization of project duration time .The sub-critical duties can be executed in parallel and consequently minimizing the entire timeline of the project. Minimizing uncertainty In reality, many business encounter project delays and unexpected uncertainty the critical path method ensures that project managers calculate the longest and the shortest project completion time, the estimates commands that project managers ascertain the unplanned factors which might impact the duration of every task. This consequently minimizes uncertainty since; problems are ascertained in advance by the model (Young, 2007). In this regard, the business avoids the unnecessary cost that might negatively affect the reported net profit of the company/ Improving productivity Using the model for decision making improves the productivity where a comprehensive is constructed as well as the tool ensures that project managers understand the availability of resource in a particular production line. In this regard, project management tool enhances the productivity by adhering to deadlines while at the same time remaining on budget. production efficiency is enhance also where labor is assigned to the best job in order to maximize high return given a limited labor force combined with production capacity. Increase as well as enhancement in production would consequently lead to high returns inform of profit to the business and at the same time helps mangers in making future critical investment decision in order to get rid of risky investment and reduce production overheads for Schuzwold limited. Question B. Impact of cost on the decision to continue producing the new line Month Batches of sandal labor cost/1000 labor hrs total labor hrs cost 1 5 1080 5400 2 10 1080 10800 3 15 1080 16,200 4 20 1080 21600 50 4,320 54,000 Month 2 Parameter Value Display times given a learning coefficient Unit number of base unit 10 Labor time for base unit,Y1 1.08 Unit number of last unit, N 15 Learning coefficient 0.8 Time for last unit 0.948 The learning curve of the second month provides a reduction in amount of labor force with an increase in the level of productivity. It can be observed that, there is 88% learning curve rate with an increase in 5 units of the production. Parameter Value Display times given a learning coefficient Unit number of base unit 15 Labor time for base unit,Y1 1.083 Unit number of last unit, N 20 Learning coefficient 0.8 Time for last unit 0.987 The above learning curve depicts that, there is an increase in the level of production with an increase in the amount of labor force of $54,000 for Schuzworld. This implies that there is an increase in productivity with a reducing rate as production increases to 4,320 units since, the graph depict a 99% learning curve implying that the reduction rate is1% for a total increase of 4,320 units. The general trend provides a reduction in the labor force with an increase in the level of production for the all learning curve rate implying that the company is ideal in managing the workforce with the aim of maximizing returns. Therefore the impact on cost on the decision to continue producing a new line do not affect the reported net profit of the company and consequently, the company should continue with the production of new line in order ton realize profit from investment. Advantages of a learning curve The main theory behind learning curves is that there will be an enhancement in understanding and competence where the extra times and business replicates a job. A learning curve as depicted graphically above depicts the rate of development in executing a job or duties over time, a substitute to a procedure is tested and process presentation data will be ascertained for an income in the Schuzwold simulation to demonstrate the consequences of learning curve theory. In this regard, the process is simple and cost effective to the business hence the company will minimize the unnecessary cost that is concerned with investment decision (Morris, 2007). The time required to make an investment decision is short hence a precise and reliable verdict decision making will be enhanced in then business. Question c. Ideal staffing planning The assignment table below provides an optimal cost of $1,369 which is ideal assignment for staffing needs. The tool provides the best allocation of staff on the following criterion; job 1 should get 10 staff to work with machine at a total cost of $370, job 2 assign 9 staff on machine B at a total cost of $333, job 3 to assign 9 staff to work on machine D at a total cost of $333 and job 4 to assign 9 staff to work on machine C at a total cost of $333 with an optimal value of $37 per unit of production. Assignment Optimal solution value = $37 Machine A Machine B Machine C Machine D Job 1 Assign 10*37=$370 12 10 11 Job 2 11 Assign 9*37=$333 11 11 Job 3 9 8 11 Assign 9*37=$333 Job 4 10 8 Assign 9*37=$333 10 The advantage of the decision tool is that, it is a cost effective tool for the jobs since, the tool will determine the number machine operator who will execute a job perfectly with the lowest cost possible and shortest time to completion due to the fact that least staff are assigned to a job in order to maximize return inform of profit to the business within a shortest time possible while at the same time ensuring that workers job satisfaction is enhanced. The decision tool would lead maximum cost reduction to the business as well as improving on the overall job performance and job responsibilities that every individual is assigned, at .Assignment provides maximum accountability, enhanced net profit as well cost reduction to the company under the least staffing available to the business devoid of employing extra labor force to work on the tight working schedule with numerous jobs to be executed so as to meet the target budget level within the stipulated time frame laid down in the budget. Transportation   warehouse 1 warehouse 2 warehouse 3 Dummy Shanghai   10/$30 0/$0   Schuzwold H     9/$18   Schuzwold F 9/$18 1/$4   2/$0 The company should ensure that the transportation cost that is ideal in form of effective transportation cost reduction as from the above table ought to be: shanghai should transport goods to warehouse 2 at a total cost of $30 per unit, Schuzwold H to transport goods to warehouse 3 at a unit cost of $18 and Schuzwold F to incur transportation cost per unit of $18 to warehouse 1 and 4$ to warehouse 2.In adhering to the above transportation model, the company will incur the lowest transportation cost and at the same ensures that there is maximum shipment of goods to all the 3 warehouse. In this regard, the company will have exhausted the least available resource in order to realize high return in form of profit from investment. D. Short term scheduling 1. Short term scheduling effectiveness Short term scheduling is related with allocation of time to a production line or process so as to meet specified production performance objectives. The scheduling technique is efficient since it will aid with faster movement of goods by way of facility as well as faster supply leading to reduction of overall overhead cost to the business and improved net profit to the company. Schuzwold limited should as result employs short term scheduling effectiveness tool for project schedule since the company will save a lot of cash by reducing the overall production overhead and increase the level of produced unit,. This will therefore save the company from incurring major loss due to project failure since the schedule itself will provide the company with best option to undertake a project as well as the factors to consider incase of risk. 2. Creation of master production schedule This is a plan for single products to manufacture in every time period by way of production, staffing as well as inventories. Master schedule is always concerned with manufacturing where the plan point out when and the manner in which every product will be demanded. The plan measures relevant processes; parts as well as extra resources so as o optimize production. Ascertain the bottleneck and also to foresee necessities and the finished product. This schedule aids breakdown the total schedule for a definite production line .Schuzwold will appreciate forward as well as backward scheduling approach. This approach commences a schedule when the duty or job necessities are recognized. The backward schedule starts a due date as well as schedules the ending operational cost (K. G. Lockyer, 2001). A best rule is that, the company should integrate is the loading jobs. This is achieved by assigning jobs as at the processing centre and thus the job allows the business to supervise the facility duty flows extra production as well as it aids with trailing of the finished jobs which will in turn get added to the system. In conclusion if Schuzwold limited will adhere to the above project technique in assigning jobs as well as deciding on the best project to be undertaken, the company will realize a massive cost reduction as well as increase in the net profit to the business since, project with shortest time to completion and with low cost is adopted and assigned maximum number of employees that the project demands and as well those project that take the longest time to completion are not given first priority since, their returns are long-term in nature. The decision tool is ideal to the managers since it will thus help them in making an ideal investment decision and thus minimizing chances of errors with budget estimates and guaranteeing on the business continuity amid the severe completion or unfavorable business situation that will prevail in a given time. It can as well be concluded that, this tool will not be fully relied upon since other external factors beyond the control of the management might affect the business and thus there will exist project delay or failure and thus the business should be certain and confident about project based on a certain degree of confidence and the standard error in order to ensure that the budget do not depict a huge value of variances that might be nard to be recovere Bibliography K. G. Lockyer, ‎. G. (2001). Critical path analysis and other project network techniques. Morris, P. W. (2007). The Management of Projects - Page 105. U. K. Srivastava, ‎. V. (1989). Quantitative Techniques for Managerial Decisions - Page 585. Young, T. L. (2007). The Handbook of Project Management: A Practical Guide t. Read More