Question

1 Approved Answer

Posted on Jul 30, 2024

If a company is striving to gain a competitive advantage by producing its branded footwear at a lower per pair production cost than some/many/all rival

If a company is striving to gain a competitive advantage by producing its branded footwear at a lower per pair production cost than some/many/all rival firms, then it should regularly review the production benchmarks on page 6 each years Footwear Industry Report to: a. determine whether to (1) invest in one or more production improvement options at one or more production facilities, or (2) replace refurbished footwear-making equipment with new production equipment at one or more of production facilities b. gauge whether its efforts to achieve a low-cost advantage per branded pair produced have been more/less successful than other companies pursuing much the same outcome and to learn what aspects of production operations may warrant further actions to reduce costs per pair c. determine whether it should spend more/less on best practice training at one or more production facilities and/or make maximum use of overtime to improve cost efficiency at one or more of its production facilities and/or expand its production capacity at one or more of production facilities d. determine whether it should close down whichever production facility has the total highest production costs per branded pair produced e. how much further it needs to reduce the S/Q rating of the pairs being reduced in order to achieve the lowest possible total production costs per branded pair produced at each of its production plants image text in transcribed

Industry 70Company LowAverage High Percentage of New Production Equipment 100% Total Regular Compensation(&Iwarker year Production Labor Cost(s por pair ar ojects) Superior Materials Usage Total Production Costsper pair produced) 36,452 42 959 Statistics Workforce Productivity (pairs/worker I year) 50,706 5,965 y Compensationssupervisor /year 64,328 73,323 87,803 Branded Production TOM6-Sigma Spending Current Spar preduced Cumulative 00) 46,355 27.36 0.8% 46.355 29.23 3.8% 4.02 98,756 32.51 6.2% 39,574 0.0% 0.00 Reject Rate Cost Per SQ Start production cost par par Sg Industry 70 Low Average High 100% 100% Percentage of New Production Equipment Labor_Total Regular Compensation ($Iwoker yar 22,969 24360 27,247 5,845 7.25 39,369 41961 48,200 23,263 3.933 6.37 Statistics Workforce Productivity pairs/worker I year) Production Labor Cost(s per pasir aer rejects) Supervisory Compensation s/ supervisat/year) 4.263 4.49 BrandedSuperior Materials Usage Production TOM6-Sigma Spending-Current (Spair preduced 0.00 22.50 4.40 Cumulative (000s) 0 27,54184,226 5,674 Total Production Cost (spr pair producod Reject Rate 26.40 Cost Per SIQ Star(l production cot par pair SiO ating 644 Industry 70 Low Average High Percentage of New Production Equipment 53% 100% 100% orTotal Regular Compensation (s/worker year Statistics Workforce Productivity (pairs/worker Iyear) 13,121 3,483 3.79 15,772 3.985 17,800 4.651 4.89 36,584 4,695 3.934 Production Labor Cost(s per pasir ar ejects) Supervisory Compensation s/ supervisar/year) 27,070 30,641 27,610 BrandedSuperior Materials Usage roduction TOM6-Sigma Spending -Current Spar preducod 19.117 17.20 82 241 63,923 Total Production Cost(spr pair produced Reject Rate 23.22 5.6% 42.40 10.0% 19.89 Cost Per SiQ Star(l production cot par pair SiO ating 2.25 Industry 70 Industry 70Company LowAverage High Percentage of New Production Equipment 100% Total Regular Compensation(&Iwarker year Production Labor Cost(s por pair ar ojects) Superior Materials Usage Total Production Costsper pair produced) 36,452 42 959 Statistics Workforce Productivity (pairs/worker I year) 50,706 5,965 y Compensationssupervisor /year 64,328 73,323 87,803 Branded Production TOM6-Sigma Spending Current Spar preduced Cumulative 00) 46,355 27.36 0.8% 46.355 29.23 3.8% 4.02 98,756 32.51 6.2% 39,574 0.0% 0.00 Reject Rate Cost Per SQ Start production cost par par Sg Industry 70 Low Average High 100% 100% Percentage of New Production Equipment Labor_Total Regular Compensation ($Iwoker yar 22,969 24360 27,247 5,845 7.25 39,369 41961 48,200 23,263 3.933 6.37 Statistics Workforce Productivity pairs/worker I year) Production Labor Cost(s per pasir aer rejects) Supervisory Compensation s/ supervisat/year) 4.263 4.49 BrandedSuperior Materials Usage Production TOM6-Sigma Spending-Current (Spair preduced 0.00 22.50 4.40 Cumulative (000s) 0 27,54184,226 5,674 Total Production Cost (spr pair producod Reject Rate 26.40 Cost Per SIQ Star(l production cot par pair SiO ating 644 Industry 70 Low Average High Percentage of New Production Equipment 53% 100% 100% orTotal Regular Compensation (s/worker year Statistics Workforce Productivity (pairs/worker Iyear) 13,121 3,483 3.79 15,772 3.985 17,800 4.651 4.89 36,584 4,695 3.934 Production Labor Cost(s per pasir ar ejects) Supervisory Compensation s/ supervisar/year) 27,070 30,641 27,610 BrandedSuperior Materials Usage roduction TOM6-Sigma Spending -Current Spar preducod 19.117 17.20 82 241 63,923 Total Production Cost(spr pair produced Reject Rate 23.22 5.6% 42.40 10.0% 19.89 Cost Per SiQ Star(l production cot par pair SiO ating 2.25 Industry 70