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Mini-Case The First Meeting Between the New CEO of Idle Time

question 72

Multiple Choice

Mini-Case
The first meeting between the new CEO of Idle Time Gaming, Inc., John Noble, and Howie Spradlin, the production manager, did not go smoothly. The purpose of the meeting was to discuss the problem of declining productivity and to develop a strategy to turn the situation around.
Howie started the conversation by handing Mr. Noble the most recent production report. "I've always thought that most of our employees were lazy, and now I've got proof," Howie stated. "We pay these guys the highest wages in the industry, provide them with a safe place to work, and make the job as simple as possible. We aren't asking these guys to do brain surgery, but productivity still lags and our production costs increase. I've told all the supervisors to watch these lazy bums every second to make sure they put in a full day's work. If those guys think I'm going to let them get away with goofing off, they're in for a rude awakening."
CEO Noble responded in a way that surprised Howie. "Maybe these employees aren't lazy, Howie, maybe they are just bored and resent the way we've treated them," he said. "The employees are experienced and well trained. They might work harder and smarter if the work were more interesting and rewarding. Their attitudes might even improve if we treated them with more respect. Maybe one of the best ways for you and me to understand where they're coming from is to spend some time alongside them."
For the next hour, the two discussed ways to improve worker motivation and performance. Howie left the meeting with an unsettled feeling. Many of Mr. Noble's suggestions seemed naïve to Howie. "Mr. Noble is the boss, but I think he is too optimistic regarding human nature," Howie mused. Reluctantly, Howie had to admit that his own approach had not succeeded in improving the plant's performance. He decided to take a hard look at some of Mr. Noble's ideas.
-Currently, jobs at Idle Time Gaming are broken into small individual steps, and each employee is assigned to perform a different step in an effort to achieve task efficiency. This technique is known as job:

Definitions:

Direct Labor

The cost of wages for employees who are directly involved in producing a product or delivering a service.

Raw Material

The basic material from which a product is made, typically unprocessed or minimally processed substances used in manufacturing.

Direct Labor

Refers to the wages or salaries paid to workers directly involved in the production of goods or services.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, insurance, and salaries of permanent staff.