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Labour Management and Relations

Direct Labor Rate Variance (DLRV)

I need help with the following question: The Alperti Company manufactures surgical gowns for hospitals. Their controller, Ethell Hieken is preparing the variance analysis report for October. Standard Costs are as follows: Direct Material 2.0 yards at $6 per yard Direct Labor 0.25 hours at $12 per hour During October, M

Krause Corporation Steve Rothel was supply manager for the Midwest division of the Krause Corporation. Shortly before his company was to install an exhaust system in a new construction project, Steve was asked to compare fabricating the pipe with buying the pipe from an outside source. Krause Corporation, a mechanical and sheet metal contractor, was founded over 50 years ago. Although it had a number of branches in the United States, the majority of its metal fabrication work was performed in its Midwest facility. The company mission stressed quality workmanship, competitive pricing, and timely performance. A Laboratory Exhaust System Krause recently was awarded the bid to provide the HVAC system in a corporate headquarters building that housed a research laboratory. This was a complex project with many nonstandard features due to the specialized use of the building. The system included a need for over 6,500 feet of 10-inch diameter, 16-gauge stainless steel pipe. This piping would be used for the venting of the laboratory exhaust. When the cost estimation department at Krause prepared the original bid, they had planned to fabricate this pipe at their Midwest facility. A Request for Cost Reduction As the project got under way the vice president of sheet metal fabrication asked Steve Rothel "if it would be possible to provide the stainless steel pipe at a lower cost than the original estimate." Steve knew, of course, that any reduction in cost must not come at a sacrifice of quality. Because of toxins that would be present in the laboratory exhaust, it was critical that this system be absolutely leak proof. Every pipe run would be individually tested to insure integrity If leaks were uncovered in the welds, it would require a time-consuming effort to reweld the joints on site. Steve realized that there were two approaches to providing the pipe. Krause could proceed as planned and fabricate the pipe in-house, using the lowest-cost, acceptable quality steel available on the market. The second possibility would be to find a supplier who could provide the pipe already formed at a better cost. The Purchase Option Steve first explored the purchase option. He did a thorough search of the market, and found that most suppliers were asking from 23 to 28 dollars per linear foot (delivered) for 10-inch-diameter,16-gauge stainless steel pipe. He was pleasantly surprised, however, to find a supplier who would provide the pipe for $18.10 per linear foot. This supplier provided the pipe in 20-foot sections and guaranteed the pipe to be sound (no leaks). In addition, their pipe was "perfectly" true (round), a trait that Krause's current equipment could not always provide. This feature would reduce the time needed to make connections between sections of pipe and reduce the likelihood of a bad weld joint. Although this option sounded very attractive, Steve, a veteran in the supply management area with almost 14 years of experience, knew he couldn't rely on first impressions to make important management decisions. He would have to subject his options to a thorough analysis to ensure a wise decision. The Make Option Steve had access to the data necessary for manufacturing cost estimating. He knew that the process of making pipe required two steps. First, a flat sheet of steel is formed into a cylinder through the process of "rolling." Then the seam is joined in a welding process. For a 10-inchdiameter pipe of 16-gauge steel, it takes about six minutes per piece to roll, including loading and unloading the part. The equipment Krause had available for this process could roll lengths up to eight feet. The welding process was estimated to take ten minutes for an eight-foot section. The figure the company used for cost estimating purposes for hourly labor rate was $32.60 per hour. An overhead charge of 40 percent was added to the variable costs. Stainless steel sheets were available in 36-inch, 48-inch, and 60-inch widths at any length up to 10 feet, with the best price being $1.80 per pound. A square foot of 16-gauge steel weighs two and one-half pounds. The welding process required welding wire and welding gas. Welding wire cost around $5.20 per pound and .03 pounds were needed per foot of weld. Welding gas cost around 25 cents per eight-foot seam. Many of the lengths of pipe needed in the project were longer than eight feet. Thus, Steve thought it necessary to include the cost of an extra joint (which, for example, would make two eight-foot lengths into one sixteen-foot length) in the "make in-house" alternative. Such a joint required welding around the diameter of the pipe, a process that, with setup, would take around 18 minutes per joint. Steve wondered which option would be best. 1. Should Steve recommend buying the pipe or making it?

Steve Rothel was supply manager for the Midwest division of the Krause Corporation. Shortly before his company was to install an exhaust system in a new construction project, Steve was asked to compare fabricating the pipe with buying the pipe from an outside source. Krause Corporation, a mechanical and sheet metal contractor

No deal!" said the union.

"No deal!" said the union. "The current method of evaluating government employees at this agency is terrible, and if a change doesn't occur, we'll be in court seeking damages." In 2004, a government agency approved and initiated an ambitious project, part of which was to develop an updated, automated evaluation system for the

Calculations of Materials & Labor Variances

Prado Corporation manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: Materials - 1 lb plastic@$3.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.00 Direct labor- 1.6 hr@$10.00 . . . . . . . . . . . . . . . . . . . . . .

Human Resources

What is the current growth in union membership? What is the organizing process for a labor union to enter a nonunion company?

Union relationships with management

Write a short essay on how the predictors of union participation suggest that union leaders will likely be involved in an adversarial relationship with management. Explain why they believe this. Provide an site that can be referenced for more information.

Labor relations

Not all forms of strikes are protected by the NLRA. What types are protected? Unprotected? Does this make sense, or should all types of strikes be treated equally?- Economic strikes, unfair labor strikes, Recognition strikes, Sympathy strikes are a maybe and Wildcat strikes are occasionally. These are the ones that are protec

Labor Relations

Do you believe employee elections regulated by the NLRB are successful? Why or why not? Please explain your answer.

Labor Relations

What factors are contributing to the decline of union membership? Discuss.

international business questions

1.__________ is the only source of sustainable competitive advantage available to the U.S. A. Sourcing of cheap raw materials B. The caliber of its people C. Information technology D. Available capital Reset Selection 2. Ideally, the __________ should dictate the organizational structure and staffin

Union strategies in organizing drives

-In a concise paragraph, paraphrase what you have learned about union strategies in organizing drives to describe the strategies to a new union organizer. Organizing drives for a new union requires multiple steps and must carefully analyzed the need in order to be successful and righteous in forming a union in a work environ

union email use at work

Should employees be allowed to use company e-mail systems to discuss common work related concerns pertaining to their wages, benefits, and other terms and conditions of employment? How about to discuss unionizing? Here are some ideas: Yes I think they can discuss common work related concerns pertaining to their wages, be

Labour Rate Variance

The following labor standards have been established for a particular product: 1.5 standard labor hours per unit at $17.55 per hour. During the last month, 5,300 hours were worked costing $94,340 and 3,600 units were produced. What is the labor rate variance for the month? [Do not use decimals. If your labor rate variance is nega

Labor Relations

-Employees might respond to workplace injustice in one of five ways: quitting, individual voice (such as complaining), collective voice (including forming a union), resistance (including work withdrawal such as absenteeism, reduced work effort, and work avoidance, or perhaps even sabotage), and silence. How might union strategie

Labor Laws

Review the major laws affecting labor-management relations in the textbook. Based on your review, what are the pros and cons of labor unions for employees? For employers?

workplace discrimination

12. City Hospital employed 5 workers of Middle Eastern descent in their maintenance department. The maintenance supervisor assigned all of them to clean the morgue and the basement. These employees were not allowed to work on any other floors or come into contact with patients. A. City Hospital will be liable for national orig

Strategic compensation relative to the insurance industry

You are a compensation analyst for Worry-Not Insurance Company, which is located in Hartford, Connecticut. Define the relevant labor market for insurance claims adjusters and for data entry clerks. Describe the rationale for your definitions.

Unions - AFL, IWW, and CIO

The AFL, IWW, and CIO were all created out of frustration with the existing dominant form of unionism at the time. Explain. Also, what does this imply about the future of U.S. unionism?

Three premises to unionized labor negotiations

The case study question was: What are the basic premises of U.S. labor relations? The textbook listed the premises as "The three objectives of efficiency, equity and voice provide the framework for labor relations" (Budd, Labor Relations, 3ed pg 12). This solution explains the dependency of each premise on the others, partic

The Union-Organizing Process

Describe the union-organizing process. Outline the steps in the collective bargaining process. Describe the fears and best opportunities about being an effective supervisor, and steps taken toward understanding and applying principles of communication and collaborative relationships.

Labor Rights

The argument has been made that competitive labor markets will eliminate irrelevant and invidious discrimination because it forces employers to select and retain employees based strictly on their productivity. Assuming that this theory is held to be true, will civil rights law eventually become irrelevant? What are the major

Nurses and Unions

You are the Human Resource Director for a 500-bed hospital. You have learned that the American Professionals Union is attempting to unionize your 1,000 registered nurses. The CEO has asked you to draft a plan - either supporting the nurses in their efforts OR attempting to remain union free. Draft solid arguments - either pro or

A Change in the Medical Insurance Plan

Based on the reading of case studies 7.2 (A Change in the Medical Insurance Plan) and 9.3 (The Reinstatement Offer), How well does the current labor relations system deal with the type of issues that are found in the workplace? Refer to the questions found at the end of the case studies to help you think about your response. Pl