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UTILIZATION OF PERSONNEL Sample Problems

The document discusses three scenarios involving personnel utilization and costs: 1) A contractor needs to determine how many additional workers to hire to complete a 100-day job on time. Hiring a certain number at specific daily rates could allow him to avoid fines for going over deadline. 2) For a recurring factory maintenance job, analyzing worker idle times could reveal a more economical crew size than the current three-person team. 3) An engineer considering hiring 30 more workers for a 35-day road project must calculate if that would save on liquidated damages compared to the current crew's 50-day completion time.
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100% found this document useful (1 vote)
425 views1 page

UTILIZATION OF PERSONNEL Sample Problems

The document discusses three scenarios involving personnel utilization and costs: 1) A contractor needs to determine how many additional workers to hire to complete a 100-day job on time. Hiring a certain number at specific daily rates could allow him to avoid fines for going over deadline. 2) For a recurring factory maintenance job, analyzing worker idle times could reveal a more economical crew size than the current three-person team. 3) An engineer considering hiring 30 more workers for a 35-day road project must calculate if that would save on liquidated damages compared to the current crew's 50-day completion time.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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UTILIZATION OF PERSONNEL

1. A contractor has a job which should be completed in 100 days. At present, he has 80 men on
the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are
each paid ₱120.00 a day, 25 at ₱180.00 a day, and 5 at ₱250.00 a day. For each day beyond
the original 100 days, the contractor has to pay ₱500.00 liquidated damages.
a) How many more men should the contractor add so that he can complete the work on
time?
b) If of the additional men, 2 are paid ₱180.00 a day, and the rest at ₱120.00 a day, would
the contractor save money by employing more men and not paying the fine?

2. A recurring maintenance job in a factory is being done by a three-man crew. Due to the
nature of the job and space limitations, it was observed that two of the men were idle 37% of
the time, one of the men was also idle an additional 42% of the time. The three men could
work together only 21% of the time, and at any given time only one man was required. The
men were each paid ₱24.00 per hour. Each time the job was performed a set of tools and
equipment with a value equivalent to ₱36.00 per hour was used. If the three-man crew could
complete the work in 5 hours, which crew size would be the most economical?

3. An engineer has a 35 day road reconstruction contract. His 43 worker can complete the work
within 50 days, so he decided to hire 30 additional workers. If he pays each worker ₱300.00
per day and ₱800.00 per day liquidated damages beyond the contract length, would he save
money for hiring 30 additional workers?

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