The Vice-President of Manufacturing (VPoM) fills an extremely important function in the Company. Without a good VPoM, a Company simply cannot function, let alone make a profit. A very strong VPoM will function as the "second-in-command" if not leader of the Company.

When the K-Business meeting begins, the VPoM immediately consults with the VPoHR to find how many workers came. Then, the VPoM should assign workers to the various tasks necessary for completion. Then, he oversees their working during the remainder of the meeting. Finally, as the night ends, he should take an inventory as to the number of units completed by each member of the Company.

This means, in effect, the VPoM leads the Company 75% of the time.

As soon as elected, the VPoM needs to play a very active role in product selection and development. Basically, he needs to tell the CFO, in conjunction with the VPoHR, what products his work force can make while the VP of Sales will tell what they can sell.

This requires, at the earliest possible opportunity, two appraisals, one of the Human Resources of the Company and a second of those resources the Company can buy. For the former, he needs to sit down with the VPoHR and determine in what fashion he can best employ his entire work force. The word "entire" has a particular relevance here. If the Company selects a product requiring, for example, a very ornate kind of calligraphy that only one student can accomplish, this create a bottleneck as the rest of the work force must sit idly by while waiting for this one worker.

Generally, these considerations argue against a Company producing a "service" since it may end up with no particularly good activity to involve the Company's workers during its two hour meeting time. Finally, the VPoM needs to consider the relative time requirements for a given product; since a company "pays" for time with its hourly workers. Some products may cost too much relative to their selling price. Together with the VPoHR, the VPoM should fill out the Variable Costs of Labor Worksheet.

As of 2005-2006, a one-year ban does not allow service companies.

Also, the VPoM needs to consider the costs of Variable and Fixed Costs other than Labor. If the company employs a Purchasing Agent, he can determine the approximate costs of these materials on a per unit basis. By adding these figures to the Variable Cost of Labor, the VPoM can determine the approximate cost of each unit produced.

The results of these figures in comparison to the probably sale price can go a long way towards determining if a firm should produce a product. If the costs of production surpass the probable sales price, obviously the firm should try something else. If the margin per unit, called "mark up" does not amount to very much, the CFO should complete a break-even study to determine how many units the firm should produce to break even.

These considerations can go a long way towards determining whether to produce a good.

While these spreadsheets can act as an aid, the more important point remains that the VpoM make a semi-accurate figuring as to the cost of producing his units.

The somewhat different status of wage and salary earners may argue for a slightly different strategy, but fundamentally the VPoM needs to consider a basic fact. The more units produced by his labor his force per hour, the lower the cost per unit, and the greater the profit per unit. To express this mathematically:

Profit = Total Sales Revenue - (Total Fixed Cost + Total Variable Cost).

In the former equation, greater productivity mean less AVC and TVC = AVC*units. Thus, lower variable cost.

Further, the more workers unproductively on the payroll, the higher the cost. If a company maintains a large work force, the VpoM needs to keep them productively employed or the company's costs soar and its profits fall.

However, the VPoM needs to also fill the role traditionally filled by the "Quality Control" Department. Thus, he must make sure that the units come out as acceptably. Otherwise, the Company may have to "discard" some poor units, which raises variable cost, or, alternately "mark down" those same units. The VPoM, then, needs to keep his work force doing their jobs quickly but not to such an extent that quality suffers too much.

Still, VpoMs must remember that ultimately they need to produce product, even if of less than ideal quality. Without product, the company cannot generate income.

Probably the most challenging task for the VPoM lies in simply getting his workers to work and keep working throughout the short, two-hour meeting. While the VPoM may consider his charges as working at a "job," they may well view the experience as more akin to a fun club or a social hour. Further, officers, who receive their pay on a monthly basis, may feel that they have many "more important" things to do than simply putting together units. Of course, real companies face many of these same challenges.

VPoM's will rise to this challenge in several different manners. Typically the least effective method lies in yelling, screaming, and threatening to fire people. Since the Board will want to approve most firings anyway, in practical terms a VPoM needs to worry far more about people quitting, and wanting their back pay, than getting them fired.

Several suggested strategies may help the VPoM. First, the VPoM needs to have a definite plan of manufacture for his workers that begins within five minutes of the start of the regular company meeting. If behind on production, the VPoM may want to push to have part of the monthly Board meeting used as an additional manufacturing session. This means that if production entails a large amount of set-up, the VPoM, assisted by Purchasing and Safety, should have accomplished this before the meeting.

Second, the VPoM should have definite "work rules" for the group. For example, they may decide whether workers can talk while working, if they can take a break, etc..

Third, the VPoM should schedule a regular "break time" whether at 1600 or 1545. Then, he should definitely make sure that all workers return at the same time.

Fourth, the VPoM definitely needs to encourage the maximum amount of production by company officers. As older students, the officers often possess the greater skills in production, and thus they can make some of the best products. On another level, though, seeing the president making product will encourage other students. This includes, within reason, the VPoM. A VPoM who seems very intent on making good product will encourage others.

Fifth, the VPoM should make some effort to alter tasks among workers. While ideally he should work every student as every task, some will simply have greater skills or inclination towards one task or another. On the other hand, an assembly line will likely not work, so he may consider letting a few substandard products pass so that the Company keeps workers happy.

Finally, the VPoM need to find a way to keep the crew on-task without grating on them. It make take a concerted effort on the part of him and the President to keep the Company moving forward.

A. Production Master Form

The Production Master Form records the basic production activity of the Company. The Company form lists the production of each person. It includes an extra spot for over-time although usually overtime will occur for other reasons. The VPoM needs to alter the totals from the default totals of "2" per day. The Company also needs to enter the production goal for each month. All of these records should total automatically, but the VPoM should double-check.

Starting in 2006, all VpoMs will keep one copy of their records on the company computer. This means that the VpoM must set aside five minutes or so to quickly update his production totals, save the record under a new name (i.e. "prd_ms01" becomes prd_ms02.xls"), and make a backup copy to take home. The VpoM may want to do this during clean-up time, and possibly he can simply question employee while they clean up.

The VPoM must keep an updated copy and, at the end of each night, ask each member individually about their production. This will have the additional benefit of "encouraging" production. The VPoM should print out the new totals each week. This will allow seeing how well the company approaches its goals as well as showing how many units went to sales. For the VpoM's records a unit "went to sales" upon completion even if no one checked it out.

B. Variable Cost of Labor Worksheet

As mentioned previously, the VPoM needs to complete this sheet in conjunction with the VPoHR. Ideally, he/she should fill this out first before selection. At the end of each month, the VPoM needs to replace the "default" numbers with actual numbers and report these back to the President.

Many VpoM's may use these forms only once along with the similar spreadsheets in the PMs files. However, they can provide valuable information to the CEO and a good VpoM will definitely want to use them.

Very similar to the Variable Cost of Labor Worksheet, these together will give the approximate cost per unit which, along with the price, will give the per unit profit. Alternately, the information from the Fixed Cost Worksheet (FC), the projected price, and the Average Variable Cost (from Variable Cost of Labor and Variable Cost) Worksheets will yield the break-even point.

In the presence of Purchasing Agent, the VPoM should fill in these sheets in conjunction with the Purchasing Agent. In the absence of the Purchasing Agent, the VPoM needs to fill these out. Consult the Purchasing Agent's directions.

D. Purchasing Log

The Purchasing Log maintains records of the purchases. This gives an ongoing record of purchases that should correspond to the records compiled by the CFO. Consult the Purchasing Agent's directions.

Most importantly, the VpoM needs to make sure that the PM purchases sufficient materials to allow production to proceed. In the absence of a PM or in the presence of a poor PM, the responsibility falls on the VpoM.

The Safety Record shows and verifies the training of all members to the specifications necessary to use the tools and processes used by the Company. The Safety Log only needs filling out in case of incidents. The VPoM must fill these out (the latter as needed) in the absence of a Safety Directory. Consult the Safety Directors' book.

The following changes most effect the VpoM and will bear further discussion below.

By October 2nd, A K-Business Company must
(3) Provide its sponsor the equivalent of KD50 either through either
(a) cash;
(b) the equivalent of KD50 in shares of company stock according to IPO value.
(6) Vote upon a monthly salary scheme and get sponsor's approval.

The two changes above mean that companies need to begin manufacturing as soon as possible. The early half-payment of sponsors' fee means that some companies will end up giving shares of voting stock to sponsors and others will dip into the stock sales money to pay the sponsors. Either way, this means that the manufacturing process needs to generate income.

As noted, at length, in the VpoHRs books, the salary given to the sponsors will NOT change. Thus, if the company votes a high hourly wage, they must pay that wage.