Alternative One reduces wasted motion (walking) to 1% of total labor used on the assembly line. Physical lifting is reduced to no more then 12 pounds. Six people will be required on the assembly line. Productivity in finished goods per 8-hour shift will increase to 392. It is anticipated that workers comp claims will be reduced to .3 per year; however, a capital investment of $1.3 million is required in robotics and mobile storage carts. Useful life of the equipment is 7 years.
Alternative Two reduces wasted motion to 7% of total labor time while physical lifting is reduced to no more then 23 pounds. Nine people are required to staff the assembly line. Productivity will be 288 widgets per 8-shift. Workers comp claims are estimated at 1.9 per year. Capital investments are $967,000 with a useful life of 5 years for the equipment.
Write a 350- to 500-word executive summary that provides justification for the particular alternative you select. As part of your justification, provide.
o a cost-benefit matrix that compares the alternatives showing the cost-benefit for each alternative.
o the effects the alternative will have on productivity.
o possible benefits of using a network strategy to streamline operational procedures.
Note. The lowest cost alternative may not be the best alternative.