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PART FIVE (15 POINTS) Dr. Omer Al-Ammer is a production manager in Al-Wardy Manufactures. Omer has a master degree in Human Resources Management and Development

PART FIVE (15 POINTS) Dr. Omer Al-Ammer is a production manager in Al-Wardy Manufactures. Omer has a master degree in Human Resources Management and Development and is working as the production manager for ten years. With his long experience in such a position he has new vision for taking decision regarding their production process or any other operation. In his opinion, the learning rate of the organization or the worker is a critical factor in deciding the profitability of any production plan. Hence, he put more emphases in enhancing the learning process and building skills of his workers. Moreover, he planned to have a yearly estimation for the learning curves of the workers and the organization. Having such information may help him as a production manager in estimating the profitability of any given contract or offers or in planning any production line. Recently, Dr. Omer has received an offer to subcontract some of Mazoon-Company's productions. According to the contract, the production units at Al-Warday Manufactures should assemble 30 units with a rate of $55 per unit. The units should be ready for Mazoon-Company after 90 days. Any delay in any unit, Mazoon-Company will charge Al-Wardy Manufactures an amount of $10 per unit. The fixed cost is estimated to be $1000. Dr. Omer has prepared the following estimation about the learning rate of six of his workers. These workers will be involved in the assembly work: IR Worker 1 75% Worker 2 93% Worker 3 67% Time to produce the first unit (Hours) 29 40 26 Unit Time (Hours) Worker 4 7 27 20 21 12 27 Worker 5 18 25 5 31 Worker 6 25 18 a) If you have a subcontract to do 30 units within one week. The work should be done by one worker (from workerl, worker2 or worker3) only. Which worker you will select for this subcontract and why? b) How to find the LR for the fourth worker? c) What is the time to produce the first unit for the fifth worker? d) How to calculate the expenses of the company based on the subcontract? ANSWERED IN THE EXCEL SHEET

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