National Manufacturing, Inc.

Analysis Report
Plant: Atlanta Abhijeet Tripathi
Fiscal Year: 2017 Manager, Atlanta Plant

Summary
As specialists in deep draw technologies, National Manufacturing, Inc. has been
producing precision deep drawn enclosures and shallow drawn metal
components for over 70 years.
The Atlanta Plant is known for its tightest tolerance deep draw, and its ability to
work with complex shapes, sharp corners, exotic and difficult-to-draw materials.
We have purchased a new manufacturing system from Germany towards
modernising the Atlanta plant.
This system would require four teams of four people each to staff the section for
round-the-clock operation in three shifts.
Four supervisors are presently undergoing operations, maintenance and Train
the Trainer training at Germany for three weeks.
On completion of the training, these supervisors will, simultaneously, commence
operation of the machinery, supervise the shifts and train the team members.
Analysis
Training is an important part of the operation of any machinery and untrained
workers may average 5 % rejection rate as against 2 % norm in the first four
weeks of operation. Rejection rate is the percentage of processed parts that are
rejected, for a fixed period of time {RR = (Rejected Pieces / Processed Pieces) *
100}.
These supervisors have been chosen because of their teaching skills as well as
their seniority and experience.
Conversely, the combination of supervising, operating and training during a
strenuous 8-hour shift might be difficult for a single person to handle for a long
period of time.
The supervisors will have reports to fill out, attend plant meetings, work
schedules to draw up and other administrative work besides training and
operation of the equipment.
Further, the layout of the system is such that it requires at least two trained
operators to ensure proper function and manning of vital positions.
Additionally, the operator training is intricate and will require at least two persons
to provide quality training during the shift.
Proposal
My proposal is to train four more personnel at Germany on completion of the
present training and provide each team with two trained personnel. This will keep
the output at optimum level and ensure seamless training and safe operations.
This will delay the opening of the new section by 3 weeks and during this period
the previously trained supervisors can prepare detailed SOPs and documentation
for operation of the system. They would also start with theoretical training of the
balance two members.
Cost to Benefits
My analysis of Cost to Benefits and ROI is placed at Exhibit 1.
By training the additional crew, the company stands to gain $94,800 at an ROI of
51%. As can be seen, the benefits far outweigh the costs and the ROI is good.

Cost to Benefits

Cost ; 40%

Benefits; 60%

Cost Benefits

Recommendation
It is recommended that the proposal for training four more personnel at Germany,
at an additional cost of $36,000, be approved.