You will be using the two documents you downloaded to complete this assignment: A. the Excel Workbook which you will use to analyze Human Resource needs in Practice Operations. B. You should use the Word Document to report your findings.
The assignment has four (4) parts. All must be completed
In this assignment we ARE NOT trying to accurately predict our Human Resource requirements in Practice Operations.
In Practice Operations we are randomly presented potential employees at different salary and star levels.
This assignment examines various ways of analyzing when and why we might hire personnel in Practice Operations.
This assignment will help us with our hiring, training, and firing decisions in Practice Operations we seek to run our operations in the most efficacious manner.
However, this assignment’s lessons also apply to real life operations environments.
GUIDANCE FOR PART 1 OF THE ASSIGNMENT
Assumptions for Part 1 of this assignment:
Every employee is hired or begins at a two-star (2-star) level
Each person is trained equally and, because they begin at two stars, each person may be trained a maximum of two (2) times
No consideration is given to salary or training cost in this part of the assignment.
Product bids, Sorting / Receiving and Shipping volumes remain constant or level
No consideration is given for the number of machines in production, the level of those machines, or the differences in each product’s characteristics (production rate, which machines used, etc.) in Production.
Be sure to examine the HR Staffing Forecast and HR Staffing Forecast Summary spreadsheets in the Practice Operations HR Resource Planning workbook. The example given below is also in the HR Staffing Forecast spreadsheet as are two other examples and 2 additional scenarios for which you will provide written analyses.
Follow the thought process in this example:
Bidding Receiving / Sorting Shipping
# Products – 50 Turns Average pcs per week sorted Average weight per week
33 2400 3700
INITIAL ANALYSIS
1. Bidding: 33 product bids in 50 turns means 33/50 = 0.7 bids per week. Our calculations indicate we do not not need to hire anyone because our base capacity is one (1) bid per week. However, we also know there are times we will need to bid on more than one per week in order to keep our pipeline full and our operations working. In addition, we must have someone in customer service at a four-star level or our reputation will suffer. Hiring one person allows us to bid two bids per week. While we may have times where we could bid on as many as 3 or 4 products, we may be limited to one or two per week because we are limited to six (6) active products (the total number under contract that have not yet been either produced, shipped, or received) or we may spend more money than is necessary. Overall, regardless of our what the calculations indicate, we need to hire one person in bidding.
2. Receiving / Sorting. If we assume we do no training, the initial capacity of sorting is 100 pieces. Each additional hire adds 425 pieces of capacity. We can have a maximum of 5 people in Receiving / Sorting. So, the number of people is (2400 – 100)/425=5.4 people. Rounding up to the next whole number leaves 6 people. However, we are limited to five (5) people in this area so we will have 5 people in R/S. This means there will be times we do not have enough capacity to sort all incoming material.
3. Production: As in Bidding, we will average 33/50=0.7 products per week. However, we know that there will be 2-4 times more activity in production than in bidding because of production lead times. That is, it only takes one week to bid but can take several weeks to make one product. With multiple steps in the production process, there will be several products in production at any given time. This means from 2 to 3 products produced per week (2 *0.7=1.4 or 2 rounded, to 4*0.7=2.8 or 3 rounded). Base capacity is one product with zero people and 1 product per each person added. The minimum number needed would be 1 person (2 products per week minus 1 product base capacity). Maximum would be 2 people (3 products per week minus 1 product base capacity). We will hire 2 people in production and move people from other areas if needed and available, or to other areas if those areas need it and production has sufficient capacity.
4. Shipping: 3700 pounds divided by 1000 pounds per person (assuming no training) is 3.7 people. Rounded up this means we need 4 people.
Before any training considerations, the HR requirements are therefore: 1 in Bidding, 5 R/S, 2 Production, 4 Shipping for a total of 12 people.
FOLLOW-UP ANALYSIS
1. Bidding: Training has no effect on capacity in Bidding. Therefore we will hire and maintain employment in Bidding at one person. However, with respect to training, we know to achieve maximum reputation scores from our customers we must train that person to a four-star (4-star) level. For the purposes of staffing we will hire one (1) person for Bidding and train them to a 4-star level.
2. Receiving/Sorting: By training each employee once (1 training each) we reduce the need from 5.4 to 4.6. We must still hire 5 (4.6 rounded to 5) but we know that we will have fewer, or perhaps no, times when we do not have sufficient resources to receive and sort material. By training each person twice, we further reduce our needs to 4 people. We will absorb higher training costs but will save the salary of one person per week. Based on this analysis, for the purposes of staffing we will hire four (4) employees for Receiving / Sorting and train each to a 4-star level.
3. Production: Each training in production reduces changeover (c/o) time by 11%. Assuming 3 products are in production at any given time, and assuming the four (4) machines other than Cutter, Sewer, and Packer are all affected once, and knowing the Cutter, Sewer, and Packer affected each time, we would have: {(4 machines * 1 c/o per machine) + (3 machines * 3 c/o per machine)} * (-11% * 10 minutes) = 13 c/o * 1.1 minutes per c/o = 14.3 minutes reduction per training. If 3 people are trained this becomes 3 people * 14.3 minutes per person trained = 42.9 minutes more production time per week. If every machine were at its initial level, the Presser would be the slowest, or bottleneck, operation and would limit overall production (assuming every product utilizes the presser). At 244 seconds per operation, the 42.9 minutes of c/o saving would equate to 42.9 minutes * 60 seconds per minute = 2574 seconds. 2574 seconds / 244 seconds per piece = 10.5 more pieces per week. If all machines were upgraded to their maximum (level 3), the slowest, or bottleneck, operation would be Embroidery at 180 seconds per operation. 2574 / 180 = 14.3 more pieces per week. If all machines were upgraded to level 3, and if we look at the three machines utilized in every product (Cutter, Sewer, and Packer), we find the Sewer is the bottleneck operation at 96 seconds per piece. 2574/96 = 26.8 more operations or pieces per week.
In production, the number of employees equates to the number of products we could produce plus one. So two people allows us to produce 2+1 = 3 product batches per week. Training only allows us to produce, at a maximum, ~27 more pieces per week. This has little to no effect on production and no effect on the number of employees needed. Based on this analysis, for the purposes of staffing we will hire two (2) employees per our initial analysis for Production and we will not conduct any training.
4. Shipping: By training each employee once (1 training each) we reduce the need from 3.7 to 2.5. We would therefore hire 3 (2.5 rounded to 3). We will absorb higher training costs but will save the salary of one person per week. By training each person twice, we further reduce our needs to 2 people. We will absorb even higher training costs but will save the salary of another person per week. Based on this analysis, for the purposes of staffing we will hire two (2) employees for Shipping and train each to a 4-star level.
After training employees to their maximum levels, the HR requirements are: 1 in Bidding, 4 in R/S, 2 in Production, and 2 in Shipping for a total of 9 people.
ASSIGNMENT DETAILS
You should have downloaded the Excel workbook and watched the associated video.
PART 1
In the Excel workbook are 6 spreadsheets (Human Resources Database, HR Staffing Forecast, HR Staffing Summary, HR Training Cost Analysis, Potential Employees, and Potential Employees To Analyze).
For Part 1 you will use the HR Staffing Forecast spreadsheet which contains three examples and 2 scenarios.
You will analyze the data generated for the two scenarios based on the three (3) examples..
For the 2 scenarios (see below and in the spreadsheet) you will conduct the same type of calculations, analysis, and explanations as above and in the examples given in the HR Staffing Forecast spreadsheet . You will examine the data in the HR Staffing Forecast spreadsheet and the HR Staffing Summary spreadsheet in the Practice Operations HR Resource Planning workbook. The HR Summary spreadsheet will tally the results for you. In the submission area of Canvas for this assignment, attach the completed workbook., if possible take a screenshot of the HR summary spreadsheet results and attach it, and then write your summary analysis as in the example above FOR EACH OF THE TWO SCENARIOS you were given. There are three examples in the spreadsheet, including the one above, and two scenarios, also listed below.
Bidding Receiving / Sorting Shipping
# Products – 50 Turns Average pcs per week sorted Average weight in pounds per week
1 28 2500 3800
2 47 2950 4050
Assignment for Part 1
Provide a written analysis similar to the ones given in the examples for the each of the two scenarios
Be at least as detailed as in the examples
Being able to analyze numbers, charts, data, etc. is a critical part of being an operations manager. Numbers and data are similar to reading a foreign language that you have to interpret and explain to the person who does not speak the language. You need to explain to yourself and to others what the numbers and data mean and what actions should be taken based on that meaning.
Thus the idea is not to recite numbers or copy-and-paste but to be able to understand, interpret, and explain what the numbers and data mean to the operation and to decision-making
Looking at the HR Staffing Forecast Summary, provide a concise but informative analysis (from 2 to 5 paragraphs probably) about the overall data
Please understand the given examples and scenarios may not reflect the reality of Practice Operations. For example, in 48 weeks of a 96 turn POM6 – 96 turn simulation, a total of 29 products were delivered, with four (4) products still in the organization in varying stages within the facility. The total number of pieces of raw material for the 29 products is 37925 or 790 per week on average. The total weight is 20661 pounds or 430 pounds per week on average. The receiving and shipping numbers are significantly different than the examples and scenarios. In fact, for every single operation area, there were times in this run where there was insufficient capacity and other times where every person was idle. This is a reality in Practice Operations but also in any given real-life operation. The point is not to have perfect or exact information but to be able to analyze and think. Even though the data from an actual simulation run may not equal what you see in the examples and the scenarios, the data is close enough to what you will see overall in Practice Operations. The key is to understand the nuances and thinking that goes into deciding HR requirements in Practice Operations, specifically, and in general for any real-life operation.
The analysis you provide in this portion of the assignment (Part 1, B) should reflect critical thinking about meeting organization needs with respect to planning for the number of people one would hire, and whether or not training would have an effect.
There are a number of assumptions (e.g. all personnel hired at 2 stars) and the student should address those assumptions and their implications in Practice Operations and real-life operations.
PART 2
Examine the HR Training Cost Analysis spreadsheet in the Excel workbook.
Assumptions:
All employees are hired at 2 stars for each are
Each person is trained equally and, because they begin at two stars, each person may be trained a maximum of two (2) times
The average employee salary is $450 per week for each area
Product bids, sorting / receiving and Shipping volumes remain constant or level
No one is fired during inevitable downtime
No consideration is given for the number of machines in production, the level of those machines, or the differences in each product’s characteristics (speed, which machines used) in Production.
Assignment for Part 2
For the two (2) scenarios in the HR Training Cost Analysis spreadsheet provide the same type of analysis as given in the examples
Please provide a deeper analysis than shown in the examples. The examples are thought starters only.
For example, the assumption is that the average cost of an employee in each area is $450. and each employee is hired at 2 stars. Look at the Potential Employees spreadsheet in the Practice Operations HR Resource Planning workbook. Are these assumptions valid? Why or why not?
Also, you could play with the average cost per person (BE CAREFUL! Reset back to original levels after you make changes or the data in the spreadsheets may change scenarios)
Think about what would change if employees were hired at different star levels
Etc.
PART 3
Examine the Potential Employees spreadsheet in the Excel workbook. There are tables:
Potential employees sorted alphabetically with their weekly salary and star levels at hiring for each potential operation area
Potential employees sorted by salary from lowest to highest salary. This is the same information as the 1st table but sorted by salary instead of alphabetically.
To the right of these tables is another table with 18 randomly selected employees from the pool of employees listed in the main table(s).
Assumptions:
All employees are hired at 2 stars for each are
Each person is trained equally and, because they begin at two stars, each person may be trained a maximum of two (2) times
The average employee salary is $450 per week for each area
Product bids, sorting / receiving and Shipping volumes remain constant or level
No one is fired during inevitable downtime
No consideration is given for the number of machines in production, the level of those machines, or the differences in each product’s characteristics (speed, which machines used) in Production.
Assignment for Part 3
Choose which 11 employees you would choose and why
Provide a concise but thorough explanation of your choices and why you think they are the best choices (e.g. costs, capability, etc.)
Assignment for Part 4
In the same Potential Employees spreadsheet in the Excel workbook, for Part 4 summarize what you learned in the exercise in a few concise, but thorough paragraphs. Add a paragraph or two about what might be missing or what other considerations in real-world operations one might have to consider and how this might affect hiring in real-world organizations. This may include, but is not limited to:
Overhead expenses for health benefits, payroll taxes paid by the employer, vacation and leave, other overhead
Salary or hourly increases due to seniority or training / expertise
Temporary employees
Legal and other issues regarding hiring
Isn’t it interesting that only males are available in Practice Operations
Absenteeism and other loss of availability of personnel
Hiring employees in this assignment assumes we hire everyone at the same time (and early in the simulation) and train them equally
etc.
