Aic Netbooks Case Study Analysis
Pros
- The number of operating days per week should be increased up to 7 days per week, which would prove to be beneficial in meeting the expected demands effectively, without producing much excessive units.
- It would produce only 979 excessive units.
- No new hiring would be required.
- No excessive production.
- No over-stocking issues.
Cons
- Increased overtime and allowances would be required by the workers in order to work for the whole week without break.
- This will cause the workers to be very dissatisfied as they would be required to work for the entire week.
- It is possible that employees reject toaccept this option as the best one.
Implementation Issues
While implementing the third option, it would require a proper brainstorming of employees. It is because of the fact that the management would require workers on the off days as well. In order to implement this option; the first step would be to set a new pay for overtime work and attractive allowances, which could attract the workers to work on holydays by providing them relaxed working hours. In addition to this, conducting a worker’s meeting to explore the advantages with respect to employees as well as company would also prove to be beneficial for the solution of the current issues. (WN Chen, HM Hang, 2008)
Conclusion
It is concluded that Elias Chen was closely watching the production of newly launched QuiN 816 netbooks. A drastic increase in the demand of QuiN 816 netbooks iswitnessed. The production manager was worried about the situation and wanted to check the production process in order to increase the production level to satisfy this increased demand. The total production was 119,808 netbooks per month. On the other hand, the expected demand would be 130,000 netbooks per month. Thus, it is recommended that the last option is best, because it will not create over stocked issues. The number of working days per week should be increased up to 7 days per week, which could meet the expected demand effectively, without producing much excessive units............................
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