Business entities purpose to reap maximum profits at lowest production costs possible. Operations that take place within any organization are therefore critical elements to the attainment of such a serious endeavor. Taylor Inc. is just a typical business that is making efforts towards living the business dream.
The potential of all businesses heavily relies on their investment power in efficient production methods. In fact, the level of skilled labour that they would opt for is highly dictated by how much they are willing to pay out for the services. Essentially, the productivity of businesses is fundamentally supported by the quality of workers and the working facilities obtainable.
An additional chief factor that must always be observed and which is usually a basis for measuring the performance of a business is time. If 27% of total labor time is wasted in walking, then a way to minimize that waste is very vital in increasing performance of the company’s labor force. At Taylor Inc., only 73% of working time is used productively. This is quite wasteful since working time should be about 100% if not exactly that extent, under normal circumstances. This is necessary so that even evaluation of the organization’s performance can be done accurately because this is totally dependent on efficiency of the labor force (uneconomical use of time is a sign of inefficiency).
Use of manual labor may sound cheaper in terms of maintenance. However, there are a number of demerits associated with a human-dependent labor force. In the case of Taylor Inc, walking around consumes an amazing percentage of the total working time. This should be checked and use of robotics and mobile storage carts could possibly be appropriate to cut down on the idle time of the work force and reduce compensation claims as the number of human workers will definitely go down.
Of the two suggested approaches to improving the productivity at Taylor, either of them would be appropriate as long as the organization ultimately achieves their main objectives. Simply, the approach that can be implemented contentedly to realize the set goals of the organization is welcome.
With both options, it is evident that emphasis is put on the total proceeds. The point that might be missed is that profits do not depend on this but rather the total cost of production and investment. Thus the net return is what matters. It would not be prudent to settle on an approach that is strenuous and expensive to the business.
For a more satisfying change, the financial comfort of the company should be given serious consideration alongside final net worth of the whole venture in making an option between the two options. Although workers’ compensation claims, life of the equipment, number of workers per assembly, physical lifting and worker’s unproductive motion are under check in both layouts, the final proceeds count more than anything else.
Optionally, proper networking strategy could be just a part of the solution to the problem of making an effort to bring the company on its purposeful direction. This way, better guaranteed market for manufactured widgets could be established; the now modern practice of business product outsourcing could as well be tasted. Through outsourcing, other organizations which are better established in some delivery of specific service could be used to aid in a mutually agreed upon formality.