In the XYZ Company, management is considering going from two 8-hour shifts per day to three 8-hour

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In the XYZ Company, management is considering going from two 8-hour shifts per day to three 8-hour shifts per day or two 10-hour shifts per day in order to increase capacity. Management realizes that shift start-up results in a loss of productivity that averages 0.5 hour per employee. The premium for the third shift is 15 percent per hour. Time over eight hours worked per day gives the operator 50 percent more pay. To meet projected demands, it is necessary to increase the work-hours of production by 25 percent. In view of insufficient space and capital equipment, this increase cannot be accommodated by increasing the employees on either the first or the second shift. How should management proceed?
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Niebels Methods, Standards and Work Design

ISBN: 978-0073376318

13th edition

Authors: Andris Freivalds, Benjamin Niebel

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