Optimization of labor allocation at a syringe production facility using computer simulation

Abstract

Optimization of the current labor resources at a Singapore pharmaceutical company is necessary to control the labor cost effectively without affecting the production capacity. Two new labor allocations were proposed. They featured higher labor flexibility to reduce the response time to machines failures, as well as more focused job scope to reduce work interruptions. The labor tasks were also categorized based on skill levels to facilitate the implementation of skill-based pay system in order to motivate employees. Computer simulation was used to study the performance of the new labor allocation proposals. While Proposal 1 had a lower productivity than the current labor allocation, proposal 2 showed an increase as compared to current labor allocation. The financial analysis predicted a total annual benefit of S$320,246 in the form of labor cost reduction and increased productivity from the implementation of proposal 2 with the current number of production technicians. Keywords: Labor Allocation, computer simulation, optimization The content of the thesis is modified to protect the identity of the attachment company. The name of the company and confidential information are omitted.