Please help me write a memo & executive summary for the below case:
CASE 3.2 THE BUSINESS GAME Bonnie Muio had just been promoted to the new job of production manager games and toys for Thunderbird lulanufacturing Company. For the past seven years, Bonn-{e had served as a production supervisor in another division of Thrrnderbird- The company had several well established product lines and decided it was time to diversil into new areas. Muio's supervisor, the general production n manager, asked her to work with the new production manager, John Love, on the latest product code-named The Business Game- The Business Game was a new adult game that the marketing department was of the belief that it would be immensely popular product, competing with games hke Trivia Pursuit and Fromm A Thunderbird sta' member, Jane Matheson, informed Muio that the basic tasks to be performed were assembling components purchased 'om other manufactures- Thee assembly operation could be performed in any order. In her many attempts, Jane was able to assemble a complete Business Game in 15 minutes. Matheson also discovered that if three workers each assembled two of the six operations required, they could assemble the game in half the time- H one worker worked by themselves they could produce 32 complete games a day, but three workers working together could produce 192 complete Business Games per day. Muio received the details on the time requirements and material costs of the components required for assembly as indicated in Exhibit 1. All materials could be obtained within a week of being ordered. On occasion it sometimes took two weeks to be delivered. The vice president of nance had sent a memo to the managers asking to keep inventories to a minimum because costs for the company had risen substantially. The vice president also requested All materials could be obtained within a week of being ordered. On occasion it sometimes took two weeks to be delivered. The vice president of nance had sent a memo to the managers aslcing to keep inventories to a minimum because costs for the company had risen substantially. The vice president also requested that he be informed of all investment needs exceeding $40,000. The community had a reasonable supply of semiskilled workers. The starting wage at Thunderbird was $11.65 per hour including benets. 1Working hours were from T30 am to 4:00 pm with a half hour for lunch On the average each worker earned $93.20 a day. Considering there were on average 20 working days per month, this worked out to $1,864- per month. Muio was told that she could hire as many workers as she thought they needed and pay them on what ever basis she wished= as long as she did not exceed the plant average of $12.00 per hour for regular time and time and a half for overtime. Muio was allotted a plant space of 20 metres by 5 metres and was told she could arrange the operations anyway she wanted. Her department would be charged $43.00 per square metre annually for this space. Additional space was available beyond the original l0'0'square metres but would cost the department $2.00 per square metre. The raw material inventory {at $20-00 per unit) and nished goods inventory {valued at material costs plus the cost of labour) would require roughly the same area. Because the boxes were fairly bulky, Bonnie gured she could store the equivalent of 0 completed units of The Business Game on each square metre of oor space, assuming she could pile them as high as possible. Jane Matheson told Muio that she gured they would require 50 square metres of space for assembly operations, including tables, work stations, lockers, etc.. Other xed manufacturing overhead costs associated with The Business Game were estimated to be $4,120 per month. The new product manager told Muio that the forecasted demand for The Business Game, for at least the rst year was 3,1500 units per month, with a range 'om 3,000 to 4,000 on any given month. Love stressed that Muio was expected to avoid stockouts because The Business Game would in essence be an impulse purchase, and stockouts could be very costly- The intended selling price would be set at $25.00 per unit. The marketing department estimated its xed costs (mostly for packaging design, advertising and point of sale displays) to be $4Dll Muio was also told that one of her suppliers, Magmlm Plastics, had submitted a quote of 3523.131} per completed umt for a year's supply of The Business lGame for Thunderbird. Their quality was not considered to be as good as Thunderbird's, but they were prepared to provide delivery on any schedule desired by Thunderbird. Unfortunately they also stated that delivery could be delayed om one to four weeks depending on hov.r busy they were. EXHIBIT 1 TIME AND MATERIAL COSTS [THEE REQUIRED MINUTES} Assembly peration one person alone three person team material costs A l {1.5 $1.131? B 4 2 2.513 C 2 1 (LEE D 2 l l E 3 1.5 5.1313 F i Q l 15 7".5 HUGE
