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Essay / Research Paper Abstract
A 4 page paper examining the operation of Harry Huffnpuff Glassblowing for the purpose of recommending changes in Harry's approach to his business. Harry's process is extremely wasteful and he is unable to earn the salary he requires for 40 weeks' work throughout the year. The paper identifies the source of waste and recommends slight changes in processes. Waste reduction alone provides Harry with a salary and makes the business profitable. Bibliography lists 2 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSacctHarryHuff2.rtf
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Unformatted sample text from the term paper:
Harry Huffnpuff Glassblowing operates at a loss much of the time, and it appears that the owner, Harry Huffnpuff, is completely unaware of his need to increase prices, decrease expenses
or both. Harrys unit of production is a "bundle" consisting of several pieces of high-end glass. When Harry produces six of these bundles in a week his costs
are not quite so high, but when he produces only four, he operates at a loss. Costs and Pricing Harry provides all labor
and can produce four to six bundles in a weeks time. Direct "hot time" labor per bundle is 5.67 hours; Harry should be able to produce 7 bundles in
a week if he devotes all of his time to active production. Each bundle requires an additional 2.23 hours of "cold time" labor that Sam can provide for a
total cost of 2.23 hrs x $10/hr = $22.30. Materials costs decline with additional quantity, as shown below: Table 1. Variable Materials Cost Per Bundle, Current
Practice Weeks Production Per Bundle, Mixing 1/3 Less Glass Direct materials 575.00 4 bundles 379.50 560.00 5 bundles 369.60 550.00 6 bundles 363.00
It seems as though Harry discards 50 percent of his molten glass even when producing 6 bundles in a weeks
time. Coloring products and other direct materials have costs as well, but it would seem that Harry could reduce raw materials costs by at least one third simply by
not creating so much waste. If Harry will produce a minimum of 6 bundles in a week; reduce waste; and use Sam for
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