DocCapsimBusinessSimulations

1、 the human resources screen tracks the cost of hiring and firing workers.a company will need new workers when production schedules are increased. a company will need fewer workers when automation is increased and / or production schedules are decreased. · needed complement  your plant

2、 has set of production lines, one line for each product. each line contains a workstations, and a worker staffs each station. each line has a capacity, which is defined as the number of units that can be produced on a single shift. · needed complement  the plant can work into the night by

3、adding workers to a 2nd shift. 2nd shift costs are 50% more than straight time (the first eight hours of the 1st shift). on any given line, if you schedule a production run in excess of your 1st shift capacity, a 2nd shift will be hired. · needed complement  increasing capacity will reduce

4、 the number of workers on the 2nd shift, and therefore decrease labor costs. however, increasing capacity will not decrease the overall needed complement. · recruiting costs  recruiting costs are incurred when new workers are hired. recruiting costs average $1,000 per worker. · separa

5、tion costs  decreasing production schedules, whether it is because capacity has been sold, or production curtailed to sell excess inventory, will result in lay-offs.separation costs are generated when workers are laid-off. separation costs average $5,000 per worker.your professor has the option

6、 of enabling an advanced human resources module. when activated, three areas will be addressed:complement the number of workers in the workforce. "needed complement" is the number of workers required to fill the production schedule without overtime (figure 1). figure 1 the desired compleme

7、nt is entered in the "this year" cell on the production screen. note: if the "this year" cell is colored red, you have too many employees!caliber the talent of the workforce. if teams are willing to spend the money, they can recruit a higher caliber of worker. this results in hig

8、her productivity and lower turnover. teams set a "recruiting spend" budget of up to an additional $5,000 per worker (figure 2). if they spend nothing extra, their recruitment cost per worker remains at $1,000 and they get an "average" person off the street. the more they spend, t

9、he higher the caliber of the worker.figure 2 "recruiting spend" and "training hours" are entered on the human resources screen. training the amount of time workers spend in training each year. training leads to higher productivity and lower turnover, but takes people off the job

10、while they are in training. teams set "training hours" (figure 2). each training hour costs $20 per worker.you'll be addressing these issues from an executive's perspective. your decisions can have a substantial impact on your company's performance.think of your plant as set of

11、 production lines, one line for each product. each line contains a number of workstations, and a worker staffs each workstation. each line has a capacity, which is defined as the number of units that can be produced on a single shift (if every workstation were staffed). the plant can work into the n

12、ight by scheduling overtime, or by adding workers to a 2nd shift. both overtime and 2nd shift costs are 50% more than straight time (the first eight hours of the 1st shift). the able line has a capacity of 1,800,000 units (shown as 1,800 on the production spreadsheet). if the company chooses to buil

13、d only 900,000 units (900 on the spreadsheet), it would logically cut back on the number of workers it employed (however "separation costs" would be incurred). concurrently, if the company chooses to build 2,000,000 units (2,000 on the spreadsheet) it could: a. keep the number of workers c

14、onstant. this means employees will have to work overtime hours with a wage rate of an additional 50%. running overtime allows companies to avoid hiring and training costs, but overtime wears out the workforce, leading to reduced productivity and higher turnover. higher turnover increases future recr

15、uiting costs; or b. consider paying the recruiting costs and hire a 2nd shift. 2nd shift workers are paid the same wage rate as 1st shift workers on overtime (an additional 50%), however 2nd shift workers are more efficient than 1st shift workers on overtime (they aren't as tired) and the employ

16、ee turnover rate is lower (they are not disgruntled by the extra hours). lower turnover reduces future recruiting costs.this is how the production screen looks when the hr module is enabled. the green "this year" cell requires an entry. in this example the needed complement of 909 workers

17、has been entered in the "this year" cell.note the production line capacities in the figure above: 1,800 for able, 1,400 for acre, 900 for adam and 600 each for aft and agape (these numbers are in thousands of units). the number of workers required will vary depending on the number of units

18、 built per year (companies can build up to twice the capacity of each line) and automation levels (higher automation levels mean fewer workers are needed). for this discussion capacity and automation levels will remain constant. the figures below show the production and the human resources screens w

19、here production scheduled equals capacity (1,800, 1,400, 900, 600, 600) and the "needed" worker complement is hired (909). note that there is no overtime, and that 2nd shift reads 0. the human resources screen reflects the information that has been entered on the production screen. it also

20、 shows a turnover rate of 10% and productivity index of 100%. in the figure below the production schedule has been increased by 200,000 for each product line (2,000, 1,600, 1,100, 800, 800). the increased production jumps the needed complement to 1,087, but the workforce complement has been held at

21、909. the result, 19.6% overtime.on the human resource screen the turnover rate is now 12%, up from 10%. in the figure below the needed complement of 1,087 is entered in the this year column. the result, overtime has dropped to 0% and the 2nd shift now employs 178 people.on the human resources screen

22、 the staffing complement of 1,087 returns the turnover rate back to 10%. note, however, that the recruiting cost row has been steadily creeping up $299,000 on page 3, $317,000 in page 4 (because the turnover rate rose to 12%) and $495,000 on this page (due to the hiring of the 2nd shift).in the figu

23、re below this year's complement has been dropped to 600. now there is no 2nd shift and the 1st shift is working 80.6% overtime.on the human resources screen turnover jumps to 18.1%. recruiting cost has dropped to $108,000, but there is now a separation cost (the cost of firing the extra workers)

24、 of $505,000.in the figure below this year's complement is entered as 1,150, which is above the needed complement of 1,087. overtime is now back to 0% and the 2nd shift returns to 178.on the human resources screen the recruiting cost has skyrocketed to $564,000, but the total hr admin cost is so

25、mewhat less than when the workforce was reduced to 600 (page 6).is there ever a reason to add extra workers? yes, if the company plans to improve productivity and reduce turnover with training. in figure below each worker has been assigned 80 hours of training per year.note that the needed complemen

26、t has jumped to 1,130, and there is now a training cost of $1,840,000. however, turnover has dropped to 7%. part of the expense of the extra wages and training will be offset by lower recruiting costs and future gains in productivity.note: in this example the productivity index remains at 100%. this

27、 is due to the 529 employees added this year. had fewer employees been added the 80 training hours would have increased the productivity index. in this figure $2,000 has been entered in recruiting spend (the amount of money spent per worker to attract a higher caliber worker). note that the producti

28、vity index has increased almost 2% to 101.8. part of the extra recruitment expense will be recouped by increased production line efficiency. human resources report after the round is processed the results of all hr investments appear on page 12 of the capstone© courier in the hr/tqm report

29、 (go to the last year's reports pull-down menu and select hr/tqm rpt).human resources report human resources definitions complement: the number of workers in your workforce this year. this year's workforce complement is entered on the production spreadsheet and appears in the top row of

30、 the human resource spreadsheet.there are two shifts. as you add workers, the 1st shift is completely filled, then the 2nd shift begins to fill. suppose that you do not have enough workers? the 1st shift must then work overtime to complete the work schedule. excessive overtime drags down productivit

31、y and increases turnover.2nd shift and overtime workers cost 50% more per hour than workers on 1st shift. needed complement: the number of workers needed this year if you are to avoid overtime.1st shift complement: as you increase the workforce, the simulation completely fills the needed 1st shift c

32、omplement before adding 2nd shift workers.2nd shift complement: the number of workers on 2nd shift. 2nd shift workers are paid 50% more per hour than 1st shift workers. 2nd shift scheduling has no impact upon the productivity index.overtime %: the percentage of 1st shift workers on overtime. 100% me

33、ans that every 1st shift worker is working a double shift. 15% means that, on average, each 1st shift worker performs 15% overtime.overtime increases turnover and drags down productivity.turnover rate: the percentage of workers who left the company last year, excluding down-sizing. about 5% is roote

34、d in unavoidable factors like retirement, relocation and weeding out poor workers. remaining turnover is a function of employee dissatisfaction. the best workers leave first.turnover is driven down by recruiting spend and training days (the green input cells on the human resources spreadsheet). turn

35、over also goes up as a result of overtime and a substandard compensation package from the labor negotiation.note: the turnover rate ignores down-sizing factors. it reflects the turnover in the population of workers that you keep after down-sizing (that is, after the sale of production capacity).new

36、employees: employees recruited this year. at a minimum, new employees reflects replacements for workers lost during the course of the year to turnover. it also includes workers hired in january to increase the complement from last year. new employees incur a recruiting cost.note: as a simplifying as

37、sumption, the simulation does not rehire fired or separated workers.separated employees: employees lost because of down-sizing or increases in automation. specifically, separated employees is last year's complement minus this year's complement. all separations occur in january and incur a se

38、paration cost.recruiting spend: recruiting spend (the first green input cell) is the "extra" amount budgeted per worker to recruit high caliber workers. the higher the budget, the better the worker, resulting in a higher productivity index and lower turnover. your entry is added to the bas

39、e amount of $1,000 per new employee."$0" means no extraordinary effort is spent recruiting new people. diminishing returns apply after $5,000 per worker.tip: it may take several years to see a significant impact, but the effect is cumulative. minimum turnover is 5%. if you replace 5% of th

40、e workforce each round with high caliber people, after 8 years you would replace a significant percentage of your workforce with high caliber workers.training hours: training hours (the second green input cell) is the number of hours each year that each individual worker is taken off-line for traini

41、ng and development. training produces a higher productivity index and lower turnover rate. the more time off-line, the higher the needed complement. each training hour costs $20 per worker in additional training costs.for example, "40" means that each worker will spend 40 hours in training

42、 this year.productivity index: the productivity index indicates how the general workforce compares with the workers employed in round 0. 100% means that current workers are just as good as original workers. 110% means that, on average, you only need 91% (100% / 110% = 91 %) of the workforce complement to