STAFF LEVEL OPTIMIZATION OF AN ELECTRONICS MANUFACTURING ENTERPRISE: A QUANTITATIVE APPROACH USING QUEUING MODEL

Abstract

The focus of the study is to evaluate the existing set-up of the electronics manufacturing company in terms of staffing levels. The study aims to describe the current staffing level of an electronics manufacturing company in Cebu, Philippines, identify problems and their root causes, and employ staff level optimization techniques to propose recommendation for the company.

The researchers utilized observation and document analysis to determine the existing staff level and observed the arrival of the orders in the line. The arrival of the orders in the assembly line follows a Poisson distribution (the calculated test statistic for the Chi-square Goodness of Fit Test was 0.8092. Comparing this value to the critical value of 7.81 at a significance level of 0.05) thus queuing theory is applied.

The study concluded that the appropriate number of operators should be observed to improve operator efficiency. The recommended number of servers is 48, which would save the company an opportunity loss of Php21,000 per day. In terms of changes in performance, reducing the number of operators to 48 instead of 57 would improve server efficiency by 15%.