Assembly:
Max = 10% more than projected orders
Requires 1Q lead time, with peak in Q3
4-Member Product Assembly Teams:
Each requires 1 workstation
100 workstations/PATs can = 10,000 units/year
Utilized 80 workstations/PATs in year 5, Q4
Productivity increasing to 12,000 units/year
Can add up to 50 workstations/PATs per quarter @ $75K each
Productivity cut 4% per model added; 2% boost per model dropped
Labor Utilization:
Overtime @ time-and-a-half up to 30% max.
Severance for laying off full-timers = 50% base pay per worker
Full-timer = more than 2Q
Additional Costs:
Outsourcing = $25/camera (for labor)
Handling & shipping = $3/camera
Import duties = $5/E-L; $10/M-F
Depreciation = 4%/year