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Assumptions made during production
- The labour resource output is constant throughout the production process.
- When calculating the cost we assume that the amount of work put in by the human resource is consistent with the projections.
- That the workers never miss work during the project.
We assume that the workers are never faced by such challenges like sickness that would make them miss a day of work.
- That workers work a standard 8 hours daily with no overtime.
We have not created a provision for working overtime or given any rates for calculating overtime wages.
- That there is no labour turnover.
The process only uses the workforce present at the start of production up to the end. I.e. there is no exit or recruitment
- That there is no other factor affecting production other than the size of the workforce.
- That the production engineer will be involved in every step of production
- Steps taken by production manager to reduce risk.
Risk is any incident that can happen in the place of work when least expected and usually results to losses or injury to workers(Michel & Galai, 2000). It is always prudent that the manager assess the working environment and identify the risks most likely to be faced. Risk management is the scientific approach involved with quantifying the probability of an event occurring and the effects of the occurrence(Andreas, 2006). Risk is an important part of every venture and no benefits would be gained by an entry does not take risks. Some practical approaches to alleviating the possibility of a risk happening and mitigation measures if and when a risk occurs are(Andreas, 2006);
- Making sure all the workers use proper equipment and wear protective gear.
- Making sure that the place of work has a strategic exit point in case a risk occurs e.g. fire.
- Installing fire fighting equipment and making sure they are well maintained.
- Properly securing the production plant to prevent the risk of theft.
- Taking the relevant insurance cover to secure the assets.
This measures coupled by creating awareness amongst the workers, rehearsing evacuation and first aid drills would go a long way in ensuring safety in the workplace is guaranteed. The manager should employ risk management strategies most relevant to his company.
- Reduction of the budget (cost cutting measures).
Budgeting is the process through which an entity formulates a plan to utilise his/her monetary resources by allocating them amongst the various tasks depending on a variety of factors(Alan & Gilberti, 2003). Many business enterprises due to market dynamics have been forced to look for cost cutting measures so as to increase the profitability of a firm and to maintain its competitiveness. The production manager can use a variety of approaches in order to cut on the cost. Such steps include;
- Recruiting skilled interns- the manager could use the help of interns to supplement the effort of his current workforce. This would help reduce the time frame of the project and resolving of over allocation issues effectively cutting down on cost.
- Automation of processes where possible- the production manager could advocate for the mechanization of some processes. This would help in increasing the effectiveness of the workers, reducing the time taken.
- Outsourcing- outsourcing involves identifying non-core operations in a business and contracting them to an outside firm which has greater expertise in carrying out that operation at lower costs(Greaver & F, 1999). the project manager would recommend outsourcing some non-core production functions to specialists companies. This would essentially reduce the cost of production and ensure effective use of time.
- Economies of scale- the manager could work on ways of increasing the output significantly so that the amount of profits earned supersedes the cost.
- HR initiative- the manager would let each member participate in giving ideas and raising suggestions on ways in which the production process would be made more effective. Human resource forms an important part of every production process and HR initiative is one of the best methods of bringing out the best in the workers(Noe & Raymond, 2006).
This are some of the ways the manager would use in cost reduction.
- Smooth running of the product development process.
The project manager’s most important responsibility is ensuring that the production goes on as planned. Some of the prudent steps the manager would take to make sure that all goes well during the whole process include;
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