Optimization of labor allocation at a syringe production facility : design proposals

Abstract

At MD Medical (Singapore), the syringe value stream is facing escalating labor cost and high labor turnover. Therefore, optimization of the current labor resources is necessary to control the labor cost effectively without affecting the production capacity in order to stay competitive in the global context. A method used to design optimized labor allocations is outlined. Labor tasks were first categorized based on skill levels to form new job scopes. Following which, two new labor allocations were proposed. Both proposals feature flexible worker systems that reduce the response time to machines failures, as well as more focused job scopes to minimize work interruptions. New labor allocations facilitate the implementation of a skill-based pay system, which motivates employees to learn new skills. These two proposals can provide the benefits of higher production output and improved resource utilization.