Estimating and Production Decision Making Essay

Estimating and Production Decision Making - Essay Example To get that output, we multiply the mean output per operative week with the size of the gang and efficiency of that gang. For example: For Gang no 1; Mean output per operative week is 0.16, by multiplying this with the size of the gang say 6 and the efficiency of the gang (100%) we get the output per week as 0.16 X 6 X 100% = 0.96. We have calculated the size of the other gangs in the similar way, (assuming output per week of each gang nearer to 0.96, because we have found that cost efficiency is maximum for gang size of 6). The size of the gang thus found is given in red color. .. The size of the gang thus found is given in red color. Gang Number 1 2 3 4 5 6 7 8 9 10 Mean output per operative week 0.16 0.21 0.16 0.16 0.12 0.12 0.26 0.16 0.11 0.16 Cost per operative week 320 320 335 300 320 320 335 320 315 315 Overheads per Gang week 210 210 215 200 210 210 215 210 205 205 Size of the gang 6 5 6 6 11 11 4 6 12 6 2. Starting of work of any particular gang We have ensured that the preceding gang has completed more than one unit in the week prior to the week we have started the new gang. 3. We have also ensured that after starting a gang, the preceding acitivity is completed at any stage. Working calculations are in excel