ISDS 361B Fall 2020 Dr. T. Newby Group Project

ISDS 361B, Fall 2020 Dr. T. Newby ISDS 361B- Group Project: Workforce Scheduling PL

You have been appointed as a business analyst team at Bixie Manufacturing to analyze workforce scheduling for the next six months, focusing on optimal hiring strategies and cost analysis involving temporary and full-time employees. Your task involves developing an Excel decision model to determine the number of temporary employees to hire each month under three contract options—1-month, 2-month, and 3-month—considering demand, costs, and training expenses, with the aim of minimizing total costs while meeting projected needs. Additionally, you will evaluate the impact of reduced training costs, analyze alternative hiring scenarios such as hiring full-time employees, and provide comprehensive recommendations based on your findings. The report should interpret the model results, include detailed tables and graphs, and be written in a clear, professional narrative style, addressing questions about hiring strategies, cost implications, and operational considerations.

Paper For Above instruction

The challenge of workforce scheduling in manufacturing remains a complex problem for managers seeking to align labor resources with fluctuating demand while controlling costs. In this analysis, the primary goal is to develop an optimal hiring strategy for Bixie Manufacturing over a six-month period, utilizing linear programming principles embedded within a detailed Excel model. This model aims to determine the most cost-effective combination of temporary employees under three contractual options—one-month, two-month, and three-month—that satisfy the projected monthly workforce requirements without exceeding budget constraints.

Bixie Manufacturing operates two plants in Tucson, Arizona, with demand varying significantly month to month. The company has recently started leveraging temporary staff supplied by Staffing Unlimited, which offers contracts of different durations with associated costs: $7,500 for one month, $9,200 for two months, and $11,200 for three months. Hiring employees under these options entails costs that include not only wages but also training expenses, which are incurred every time a worker is hired, regardless of tenure. The initial training cost is $825 per hire, but there is potential to reduce this expense in subsequent scenarios.

In constructing the Excel decision model, the key is to represent the relationships among hiring decisions, labor supply, and demand while minimizing total operational costs. The model incorporates variables for the number of employees hired each month under each contract, the associated costs including wages and training, and the constraints that cover demand fulfillment and contractual limitations. Functions such as SUMPRODUCT, IF, and Solver are employed to optimize the hiring plan, balancing costs against the need to meet monthly workforce requirements safely.

Once the model is established, it is used to analyze different strategic scenarios: (a) what is the optimal number of temporary hires each month and per contract type to meet demand at minimum total cost, (b) how the reduction of training costs from $825 to $750 influences the hiring strategy, (c) the implications of further reducing training costs to provoke changes in the hiring plan, (d) the additional cost reduction needed to influence hiring decisions significantly, and (e) the impact of hiring 8 full-time employees at the start of January as a supplementary staffing measure. Moreover, scenario (f) compares the costs associated with hiring full-time employees at $17.50 per hour against temporary staffing options, considering that full-time workers receive training only once at hire.

The results from the Excel model illuminate the most economical combination of hires to meet demand, highlighting the trade-offs involved in contract duration, training costs, and full-time hiring. Lower training expenses notably influence hiring patterns by favoring more flexible or longer-term contracts, which reduce repetitive training costs and improve cost efficiency. The analysis of adding full-time employees reveals that while their hourly wage might be competitive, the upfront and recurring training costs, along with their consistent salary, could alter the total cost calculus, possibly favoring temporary staffing or a hybrid approach.

From these findings, the report recommends a balanced workforce strategy that leverages the flexibility of temporary staffing during peak demand months while considering targeted full-time hires when demand stabilizes. The optimal plan involves hiring primarily through longer-term contracts, reducing repetitive training costs and promoting workforce stability. The potential cost savings from lowering training expenses to $750 or below suggest negotiation possibilities with Staffing Unlimited to achieve further cost efficiencies, which could be systematically evaluated. Additionally, the analysis underscores the importance of strategic planning in staffing to adapt swiftly to demand fluctuations with minimal overhead.

In conclusion, the model offers a comprehensive tool for Bixie Manufacturing to make data-driven staffing decisions, carefully balancing operational costs against workforce requirements. The simultaneous consideration of temporary and permanent employment options enables the company to develop a flexible, cost-effective staffing plan that can adapt to market demands, optimize training expenses, and align with strategic growth objectives. Implementing these recommendations can lead to significant cost savings and operational improvements, reinforcing the value of analytical models in production planning and human resource management.

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