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Mr. Kellogg has decided to open a company branch in Kazakhstan when the position of economy in Kazakhstan is improved since 2015. After a year
Mr. Kellogg has decided to open a company branch in Kazakhstan when the position of economy in Kazakhstan is improved since 2015. After a year operated in Kazakhstan branch, Mr. Kellogg is interested to determine the productivity of his company for this branch. The selling price is RM 15 and RM 20 per unit for year 2015 and 2016 respectively. You as an Industrial Engineer are required to justify them with suitable calculation. Data for year 2015 and 2016 are shown in Table 1. 12, 800 Table 1: Data for year 2015 and 2016 Year 2015 Year 2016 Monthly average production 10,000 output (unit) Working hours per day 8 8 No of full time worker 20 20 No of contract worker 5 6 Average monthly number of 20 20 working days Average wage per hour per RM 7.00 RM 8.00 full time worker (RM) Average wage per hour per RM 8.00 RM9.00 contract worker (RM) Amount of material (kg per 30 32 month) Price of material (RM per 2.00 3.00 kg) Average monthly energy 400 at RM0.40 /kW 500 at RM0.50/kW used (kW) Annual capital costs (RM) 120,000 130,000 Annual miscellaneous 10,000 12,000 expenses (RM) Deflator 1.0 1.2 Deflator only can use for capital costs and miscellaneous expenses. a) Analyze company performance in term of annual profit for year 2016. b) Mr. Kellogg would like to know his company is maintaining the yearly productivity growth of 5% in total productivity. Analyze and comment on the performance of the above company for year 2015 and 2016. c) Based on the above analysis, suggest one possible approach/strategy/technique for the company to further improve its productivity. Provide justification for your suggestion. Mr. Kellogg has decided to open a company branch in Kazakhstan when the position of economy in Kazakhstan is improved since 2015. After a year operated in Kazakhstan branch, Mr. Kellogg is interested to determine the productivity of his company for this branch. The selling price is RM 15 and RM 20 per unit for year 2015 and 2016 respectively. You as an Industrial Engineer are required to justify them with suitable calculation. Data for year 2015 and 2016 are shown in Table 1. 12, 800 Table 1: Data for year 2015 and 2016 Year 2015 Year 2016 Monthly average production 10,000 output (unit) Working hours per day 8 8 No of full time worker 20 20 No of contract worker 5 6 Average monthly number of 20 20 working days Average wage per hour per RM 7.00 RM 8.00 full time worker (RM) Average wage per hour per RM 8.00 RM9.00 contract worker (RM) Amount of material (kg per 30 32 month) Price of material (RM per 2.00 3.00 kg) Average monthly energy 400 at RM0.40 /kW 500 at RM0.50/kW used (kW) Annual capital costs (RM) 120,000 130,000 Annual miscellaneous 10,000 12,000 expenses (RM) Deflator 1.0 1.2 Deflator only can use for capital costs and miscellaneous expenses. a) Analyze company performance in term of annual profit for year 2016. b) Mr. Kellogg would like to know his company is maintaining the yearly productivity growth of 5% in total productivity. Analyze and comment on the performance of the above company for year 2015 and 2016. c) Based on the above analysis, suggest one possible approach/strategy/technique for the company to further improve its productivity. Provide justification for your suggestion
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