Question
Armidale Company Ltd (ACL) is aiming to bring its manufacturing labor costs under control, and has hired PKL Consulting (PKLC) in 2021 for the purpose.
Armidale Company Ltd (ACL) is aiming to bring its manufacturing labor costs under control, and has hired PKL Consulting (PKLC) in 2021 for the purpose. PKLC in their report to the ACL management advised to redesign its operations around the production facility. As a response to the report, ACL operations manager is evaluating the following two alternatives to choose from: Current (No Change) and the Proposed (Change/Re-design). As ACLs Operations Manager, you are asked to choose the best alternative for the company, based on the supporting information provided below, showing your evaluation/working out. Current Proposed Operators on machines 40 30 Number of employees for handling materials 1.50 1.50 Employees pay per hour $100 per hour $120 per hour Per employee number of hours worked 3,100 3,000
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