Dr. Omer Al-Ammer is a production manager in Al-Wardy Manufactures. Omer has a master degree in Human Resources Manageme

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Dr Omer Al Ammer Is A Production Manager In Al Wardy Manufactures Omer Has A Master Degree In Human Resources Manageme 1 (135.88 KiB) Viewed 11 times

Dr. Omer Al-Ammer is a production manager in Al-Wardy Manufactures. Omer has a master degree in Human Resources Management and Development and is working as the production manager for ten years. With his long experience in such a position he has new vision for taking decision regarding their production process or any other operation. In his opinion, the learning rate of the organization or the worker is a critical factor in deciding the profitability of any production plan. Hence, he put more emphases in enhancing the learning process and building skills of his workers. Moreover, he planned to have a yearly estimation for the learning curves of the workers and the organization. Having such information may help him as a production manager in estimating the profitability of any given contract or offers or in planning any production line. a- Recently, Dr. Omer has received an offer to subcontract some of Mazoon-Company's productions. According to the contract, the production units at Al-Warday Manufactures should assemble 200 units with a rate of $55 per unit. The units should be ready for Mazoon-Company after 30 days. Any delay in any unit, Mazoon-Company will charge Al-Wardy Manufacture an amount of $10 per unit. Dr. Omer has prepared the following estimation about the learning rate of six of his workers. These workers will be involved in the assembly work: Table (1.1): Information about the first three workers at Al-Wardy Manufactures Worker1 Worker2 Worker3 LR 75% 65% 67% Time to produce first unit (hours) 37 25 26 Table (1.2): Information about the second three workers at Al-Wardy Manufactures Time for the (hours) 27 Worker 4 21 27 Worker 5 Time to produce the 7th unit Time to produce the 20th unit Time to produce the 12th unit Time to produce the 18th unit Time to produce the 5th unit Time to produce the 25th unit 25 31 Worker 6 18 The fixed cost is estimated to be $1000 and it cost $12 per unit for production. Workers can work up to 8 hours per day. Dr. Omer is wondering if they can accept the offer or not? SONGS