leadership and management materials with questions

Case Study – (page 3)

c) Determine the total labour required for a standard month’s production and for the additional production in March. You are advised that the total labour availability is 2,400 hours based on normal working hours. Since the existing labour force is nearly fully utilised, are there any issues for John? If so, what options would you investigate and what would you recommend given that overtime is costed at $75 per hour?

HOURS

Standard Month Additional

Basic 300 (150 x 2hrs) 60

Standard Plus 750 (3hrs) 150

Deluxe 800 (4hrs) 40

Super Deluxe 500 (5hrs) 25

2,350 275

Total: 2,625 hours

Total overtime cost: 225 hours x $75 $16,875

Casuals at $50 per hour - $11,250

Casuals at $60 per hour - $13,500

d) What other issues might John face? List at least three. For each issue, suggest a contingency plan that you would expect to be in place.