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Air Kits LLC

13. Case Study (50 points)
You should use MS Word or PowerPoint for your answers, use of Excel may be helpful but not required.
After the first year of operation customer demand has increased to 20 kits per month. The two owners are overwhelmed and have asked you, to help them
a. Increase factory output by assessing needs
b. Develop an organization management plan
c. Assess staffing needs
d. Determine feasibility of expanded operations
? Currently 12 people produce 5 kits per month.
? The owners would like to focus on new product R&D and manage the business.
? Each kit sells for $75,000.
? Returns and warranty costs are $5,000 per month.
? Each functional area has $10,000 of equipment/inventory which 2 people can operate in a given 8 hour shift.
? The building and operations costs are $50k per month.
Current Functional Areas in use today
Air Kit Factory
1. Inventory
2. Warehouse
3. Shipping & Receiving
4. Functional Test
5. Production
6. Logistics
7. Safety
8. Design
9. Customer Support
10. Quality Control
Below are the expanded functional areas the owners feel would help the business grow; consider each functional area in your answers.
Air Kit Factory
1. Inventory
2. Warehouse
3. Shipping & Receiving
4. Functional Test
5. Packaging & Integration
6. Production
7. Logistics
8. Recycle & Disposal
9. Safety
10. R & D
11. Design
12. Engineering
13. Customer Support
14. Human Resources
15. Quality & Inspection
16. Total Quality Management
Deliverables (minimum two pages, no more than 10 pages/slides)
1. Explain how you would determine feasibility of expanded operations.
2. Assess staffing needs; explain how you determined those needs.
3. Determine how many employees are needed to staff the factory
4. Develop an organization management plan.
5. Create a Statement of work for each of the ?6? new functional areas.